It is estimated that the livestock sector supports the livelihoods of about 25 million people and contributes about 42 per cent to the national agricultural GDP.
With demand for livestock products expected to grow by up to 50% by 2030, there’s a clear opportunity for strategic investment to drive growth and innovation in the sector and ensure that livestock production is sustainable to reduce environmental and social impacts.
Speaking during a forum on 27th February 2023, Director Kristin Girvetz at Ag Thrive said, “Dairy and poultry received more than 50 percent of the deals reviewed in our study, underscoring investor’s perception of lower risk in these value chains. Their established businesses, strong revenue streams and reliable consumer demand through formal marketing outlets such as supermarkets make them particularly attractive.”
The study’s findings indicate increasing demand for investments, suggesting the need for active pipeline development and collaboration among investors, while businesses must ensure they are investment ready’.
“Capital is plenty, but identifying viable investment opportunities remains a challenge for investors, ” said Arjun Bhoopal, the Livestock Programme, Gatsby Africa. ” Through collaboration, we can explore new avenues to mitigate risk and reduce financing costs, driving investments across Kenya and the continent.”
The Livestock Investor Landscape study, conducted by Gatsby Africa, ILRI and Ag Thrive, was funded by the Bill and Melinda Gates Foundation through the Global Livestock Advocacy for sustainable Development (GLAD), project implemented by ILRI.
The forum also provided a platform for the exploration of opportunities for collaboration to unlock further investment in the livestock sector in Kenya.
The Kenya Development Corporation, for example, noted in its livestock investment survey that it had received a total of 46 applications for investment.
“These have a project pipeline of $34 million (Sh5 billion), of which the private sector is expected to provide $25.5 million (Sh3.7 billion),” KDC said..
