One of South Africa’s biggest food conglomerates, RCL Foods, has acquired a 33.5% stake in the parent company of the Yo Kuku and Enkoko chicken brands, Hudani Manji Holdings Ltd (HMHL), in a deal that will create the largest chicken processor and supplier of fresh and frozen chicken in both Uganda and in East and Central Africa.

 

RCL, which is listed on the Johannesburg Exchange (JSE) and which has a market capitalization of 16 billion Rand (US$1.25 billion) is expected to make further capital investments into the joint Ugandan operation. Uganda was chosen as the base for the newly formed company due to its investment friendly administration and strategic location. Teams from both companies are working on an integrated plan for the successful growth of the resulting entity – HMH-Rainbow, in order to serve markets in East Africa and other surrounding countries.

 

So far, included in the plans for growth, are the expansion of the capacity of the operation’s broiler farms to reach 540,000 birds per cycle within the next 18 months, the expansion of its feed mill to better serve local out-growers of soybeans and maize for the operation’s chicken feed, and the launching of a network of Yo Kuku retail sites to expand its sales reach.

 

A flagship store will be constructed at the HMH-Rainbow headquarters in Kampala in the last quarter of this year, to be followed by the rapid establishment of multiple retail sites across Uganda through 2016 and 2017.