IFC commits US$10M to expand De Heus joint venture in Ethiopia

ETHIOPIA – The International Finance Corporation (IFC) has approved a US$10 million equivalent local-currency loan to Alema Koudijs Feed PLC, Alema Farms PLC and De Heus Animal Nutrition B.V joint venture, to expand its animal feed mill in Bishoftu, strengthen raw-material sourcing, and increase access to locally produced compound feed.

The financing will support the expansion and improvement of feed production equipment at the existing mill, additional storage capacity, fire detection and firefighting systems, and working capital for sourcing raw materials, according to IFC project disclosures. 

The total project cost is estimated at US$12.3 million.

The loan will be denominated in Ethiopian birr and supported through the International Development Association (IDA) Private Sector Window Local Currency Facility. 

IFC said the structure provides long-term local-currency financing designed to support the company’s expansion while addressing currency and financing risks in Ethiopia’s agribusiness sector. 

The board approved the investment on 4 June 2026.

Strengthening Ethiopia’s feed supply chain

Alema Koudijs Feed is a joint venture between De Heus Animal Nutrition BV, which holds 51%, and Alema Farms PLC, which owns the remaining 49%. 

The company produces complete feeds for poultry, ruminants, aquaculture and swine at its factory in Bishoftu.

The expansion is expected to improve the availability of quality compound feed for livestock producers while strengthening links with farmers supplying feed crops. 

IFC said the project will support commercial linkages with raw-material suppliers and help increase local value addition in the animal feed chain.

The mill currently uses locally sourced maize and soybean in feed production. 

IFC’s investment will provide working capital for raw-material sourcing and increase storage capacity, helping the company strengthen the supply of ingredients needed for feed manufacturing.

IFC said the project is intended to address gaps in crop and livestock productivity while improving farmers’ access to better-quality compound feeds and technical support. 

It also identified the use of food-processing by-products in feed formulations as an opportunity to lower production costs and improve margins.

Alongside the financing, IFC is developing an advisory programme for Alema Koudijs covering sustainable sourcing, environmental and social management, and digital traceability. 

The programme includes training and coaching for aggregators involved in sourcing agricultural raw materials.

The investment comes as Ethiopia seeks to expand domestic feed production and strengthen livestock and poultry value chains. 

By combining additional manufacturing and storage capacity with stronger farmer-supplier linkages, the project is expected to support local feed availability, agricultural value addition, and job creation.

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