AgDevCo provides US$15 million financing to Victory Group for tilapia expansion in East Africa
Follow-on mezzanine debt to support scaling of aquaculture operations in Kenya and Rwanda as demand for fish increases.
EAST AFRICA – AgDevCo, an agriculture-focused impact investor operating across sub-Saharan Africa, has committed US$15 million in mezzanine debt financing to East African aquaculture firm Victory Group to support its next phase of expansion.
The funding is set to support Victory Group’s plans to grow its Nile tilapia production base in Kenya and Rwanda over the next three years, alongside strengthening its distribution systems to serve regional markets.
According to Joseph Rehmann, the company’s founder and chief executive officer, the additional capital will be used to expand output and improve supply chains as demand for affordable fish protein continues to rise across East Africa.
He also said the business is focused on building a large-scale supplier of nutritious protein while maintaining its engagement with traders and communities that depend on its fish value chain.
AgDevCo previously supported the company in 2021 with about US$4 million in mezzanine financing, which was directed toward improving operational processes and increasing production capacity.
In a statement on the latest deal, AgDevCo representatives said the continued investment reflects confidence in the company’s growth model and the wider potential of aquaculture to supply affordable food in the region.
The investor also pointed to ongoing demand pressures driven by population growth and urbanisation, which have pushed fish consumption above local supply in many East African markets.
Industry data from the Food and Agriculture Organisation indicates that aquaculture production in the region has increased in recent years, though overall output still falls short of rising demand for fish protein.
Victory Group has set a long-term production target of 30,000 tons annually by 2029 as it expands farming sites and increases cage-based production systems across Lake Victoria in Kenya and Lake Kivu in Rwanda.
The company’s expansion strategy is also expected to affect local supply chains by increasing volumes available to traders and improving access to affordable fish in surrounding communities as regional aquaculture continues to develop.
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