Ashanti

Kumasi Abattoir Company, Ltd. (KACL)

An established meat processor with brand recognition for high-quality meat seeks $1.32 million in long-term financing to upgrade its production and processing plants.

Investment needed: $1,320,000

USAID FinGAP Environmental Risk Review required
Business Type
Processing
Deal Type
Debt, Equity, Mezzanine Finance
Financing
Cap-Ex
Value Chain
Maize, Soy

Market Opportunity

Urbanization and increasing concern for food safety has created demand for food produced under hygienic conditions with regular quality control inspections. This includes meat and meat products from domestic abattoirs.

Investment Opportunity

Kumasi Abattoir Company, Ltd. (KACL) is a meat processor established in 1998 to provide high-quality meat slaughtering and processing services to butchers in Kumasi, the capital of the Ashanti Region. With high demand for its products, KACL is seeking to increase its production capacity to 60 cattle per hour and to produce 120 different types of meat products. The company produces livestock (90% of its revenue base) and provides services such as quality assurance, animal slaughtering, carcass dressing, and processing. KACL processes meat into various finished products for sale in local markets and to supply hotels, restaurants, schools, and hospitals. KACL slaughters 240 cattle, 154 sheep and goats, and 25 pigs daily. While the processing unit has the capacity to produce over 120 types of meat products, it currently produces only 43 types due to the insufficient quality and quantity of the processing machines. The company has begun construction of a biogas plant as part of the United Nations International Development Organization (UNIDO) Biogas Project being funded by the Korean government to generate energy from animal waste from the abattoir.

KACL is jointly owned by the Social Security and National Insurance Trust (SSNIT), GoG, Kumasi Metropolitan Assembly (KMA), and Butchers Association in Kumasi, with SSNIT being the largest shareholder.

Investment Required

KACL is seeking a total investment of $1.3 million to renovate and upgrade its production and processing units with modern equipment to increase efficiency. The company is interested in either equity or debt solutions, or some combination of the two.

BAS Needed

KACL may require a BAS provider to help raise financing for the project.

Environmental Considerations

A USAID-FinGAP ERR has not been conducted yet.

Supporting Initiatives

Several ongoing initiatives create a conducive business environment for this investment, including Ghana’s National Livestock Services Project. The primary objective of the project is to increase meat, egg, and milk production, raise producer incomes (particularly those of smallholders), and reduce the financial burden on the government of services it provides to the livestock subsector. The project is designed to give producers improved access to livestock health services, water and forage resources, breeding stock, and animal production technology and markets.

Contact Info

Joe Owusu Boadi, Managing Director, +233 (0) 20 818 5191; joboadi51@yahoo.com