May 2, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

By 2050 the population of the sub-Saharan region is expected to double from 1 to 2 billion people. This explosive increase will lead to fish demand that dwarfs what we see today – with demand climbing from 10 million metric tons per year today to between 16-29 million metric tons per year by 2050.

This demand pressure will never be able to be met, or even substantially alleviated, through wild-catch fishing due to overexploitation, leaving aquaculture to fill the impending void in supply. And, as the second-most fished species in the world, due to its ability to easily scale, its healthy reputation, its sustainability, and its affordability, tilapia has been identified as the fish of choice for the job.

In East Africa, fish are a crucial source of protein for its growing population. And as the need to bridge the gap between supply and demand widens, the region’s warm optimal climate and abundance of water resources make it an ideal location for aquaculture to take hold and grow. 

One leader in the industry is East African tilapia producer Victory Farms, which has recently closed on a $35 million Series B led by Creadev, a global venture and growth equity evergreen investor of the Mulliez family. 

Other investors joining Creadev were  the Acumen Resilient Agriculture Fund (ARAF), DOB Equity, Endeavor Catalyst Fund, Hesabu Capital, along with company leadership and angel investors including Joseph Rehmann, Steve Moran, Kamran Ahmad, and Hans den Bieman.

Having established that there is a serious gap in supply, the fish supply deficit in East Africa of 1 million tons per year represents one of the largest imbalances in the current global food system today. And with a feed conversion rate that is five times lower than that of beef, the environmental and economic benefits of tilapia make it an ideal protein source for the region. 

“We are delighted to support Victory Farms, the largest end-to-end white protein solution in Kenya and a key driver of climate-smart growth in the food sector across the region,” said Tom Rostand, investment director, Africa, Creadev.

With the capital gained through this funding series, Victory Farms stated that it plans to expand its operations in Kenya and Rwanda, with future possible entry into the Ethiopian, Ugandan, and Tanzanian markets. 

The company explained that this funding represents the ability to produce 100 million high-protein meals for consumers in East Africa per year while also creating thousands of jobs and enabling tens of thousands of local, small female-run fishmongers, often called mama samakis. 

“Participating in food and nutrition security is at the core of Creadev’s mission in Africa,” said Pierre Fauvet, managing director Africa at Creadev.

“We believe that Victory Farms has an instrumental role to play in meeting the demand potential for affordable quality protein meals and the potential to become a pan African champion of access to food for the many.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.