Alema Koudijs Feed gets $10 million IFC loan to expand feed production in Ethiopia

International Finance Corporation (IFC) has proposed a $10 million local-currency loan to Alema Koudijs Feed PLC, a joint venture between De Heus Animal Nutrition BV and Alema Farms PLC, to expand its feed mill in Bishoftu, Ethiopia.

The financing aims to strengthen Ethiopia’s livestock value chain by increasing domestic animal feed production and reducing reliance on imported inputs, at a total project cost of $12.3 million.

IFC funds Ethiopia feed expansion

The financing will support the expansion of the company’s feed mill operations in Bishoftu, a key industrial hub in central Ethiopia. The project has a total estimated cost of $12.3 million, with IFC’s funding structured as a long-term A loan in Ethiopian birr and backed by a cross-currency swap under the International Development Association’s Private Sector Window Local Currency Facility.

Alema Koudijs boosts production capacity

Alema Koudijs Feed PLC is jointly owned by De Heus Animal Nutrition BV, which holds a 51% stake, and Alema Farms PLC with 49%. The expansion is aimed at increasing domestic production of high-quality compound animal feed to address supply gaps affecting Ethiopia’s poultry and livestock industries.

The IFC-backed financing also includes blended concessional support, covering an estimated 24% of total project cost. The structure is designed to mitigate currency risks and unlock long-term capital for Ethiopia’s agribusiness sector, where financing constraints have historically limited private investment.

Blended finance supports agribusiness growth

The project remains subject to IFC board approval, scheduled for May 30, 2026. Beyond financing, IFC is also expected to provide advisory support focused on environmental and social governance standards, sustainable sourcing practices, and digital traceability across the feed value chain.

If approved, the investment will position Alema Koudijs as a key driver in Ethiopia’s push to strengthen domestic feed production, improve livestock productivity, and deepen its locally integrated agricultural economy.