The partnership is the first for Philafrica, a subsidiary of SA’s AFGRI Group, which focuses on investing in food categories across Africa, as well as on locally-sourced raw materials.

Founded in 2005, Novos Horizontes was working to unlock Mozambique’s agricultural potential by supporting smallholder farmers.

Novos Horizontes initially had 250 smallholder broiler outgrowers to which it supplied necessary inputs on credit and from which it purchased full-grown birds for slaughtering, processing and marketing.

According to the company’s website, this number had decreased to around 130 smallholder farmers as a result of production challenges.

Andrew Cunningham, executive chairperson of Novos Horizontes, said that with Philafrica’s support, the company could continue with its aim of becoming Mozambique’s “premier poultry producer”.

It also wanted to expand into other value chains where agro-industrial processing and building brands could buy production from Mozambique’s smallholder farmers.

“We are excited by the potential of this investment and partnership to enhance our vision to unlock potential in Mozambique,” said Cunningham.

A statement by Philafrica said that it planned to invest R1 billion to R1,5 billion in food categories across Africa over the next 18 to 24 months.

Philafrica’s CEO, Roland Decorvet, said that currently 60% to 70% of Mozambique’s poultry consumption needs had to be imported due to a lack of local production.

“We see immense potential to replace imported [poultry] products with local production and are pleased to have found a strong operating partner in Mozambique with [nearly two] decades of experience in the poultry value chain,” he said.

Decorvet added, “Moreover, our expertise in rendering, feed mixing and poultry will drive substantial synergies as [Novos Horizontes] expands in Mozambique.”

Information on Novos Horizontes’ website revealed that in 2016, the company sourced and processed 3 321t of frozen chicken, hatched and supplied 6,3 million day-old broiler chicks, and manufactured 19 995t of poultry feed.