Olam Agri, a global agricultural commodities giant, has announced plans to invest $400 million in expanding its food processing capabilities across Africa by 2028. The strategic outlay includes the construction of new animal feed mills in key markets such as Nigeria, Cameroon, and Ivory Coast, alongside other food processing expansions.
The investment underscores Olam Agri’s commitment to strengthening local value chains and enhancing food security on the continent. The company stated that the capital injection would support increased domestic production of essential food items and animal protein, addressing the rising demand driven by population growth and urbanisation.
A significant portion of the $400 million will be directed towards establishing state-of-the-art animal feed mills. These facilities are designed to support the burgeoning livestock and aquaculture sectors in the targeted countries, providing high-quality feed necessary for efficient protein production. Nigeria, as Africa’s most populous nation, is expected to be a major beneficiary, given its substantial and growing demand for poultry and other animal products.
Beyond feed mills, the investment also encompasses broader food processing segments, including wheat milling and edible oils, across various African markets. This holistic approach aims to reduce reliance on imported food products by bolstering local manufacturing capacity and fostering backward integration with local agricultural supply chains.
Boosting Local Value Chains and Food Security
The strategic rationale behind Olam Agri’s substantial investment is rooted in Africa’s demographic trends and evolving consumption patterns. The continent’s population is projected to double by 2050, leading to a significant increase in demand for diverse and higher-value food products, particularly protein. By investing in local processing, Olam Agri seeks to capitalise on this growth while also contributing to national food self-sufficiency goals.
An executive from Olam Agri highlighted the importance of localising production. “This investment is a testament to our enduring belief in Africa’s potential and our commitment to co-create sustainable food systems,” the executive said in a statement. “By expanding our processing footprint, we are not only bringing jobs and economic opportunities but also ensuring a more resilient and secure food supply for millions across the continent.” The company expects the new facilities to create thousands of direct and indirect employment opportunities, particularly in rural areas where the raw materials will be sourced.
Olam Agri, a subsidiary of Singapore-based Olam Group, already has a significant presence in Africa, involved in sourcing, processing, and distributing various agricultural commodities. This latest investment builds on its established network and expertise, reinforcing its position as a key player in the continent’s agricultural sector. The company has a long history of working with local farmers, which is expected to expand further through increased demand for locally sourced grains and other raw materials for its processing plants.
The expansion aligns with broader government initiatives in Nigeria, Cameroon, and Ivory Coast to promote industrialisation, reduce food imports, and support agricultural development. By localising processing, Olam Agri aims to mitigate risks associated with currency fluctuations and global supply chain disruptions, offering more stable and affordable products to African consumers. Details of specific site selections and construction timelines for the new facilities are expected to be announced as the projects progress towards their 2028 completion target, as reported by Nairametrics.
The investment will contribute to addressing a critical need for enhanced processing capacity in Africa, as highlighted by reports from organisations such as the World Bank and the Food and Agriculture Organization (FAO), which consistently advocate for greater private sector involvement in agricultural value addition to unlock the continent’s full economic potential.
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