In 2017, CDC invested $5.5 million in Cattle Feedlot Company through the Impact Accelerator. Our investment will support the remedial irrigation works required on one of the farms (Kaombe), and in the longer term provide an agricultural development platform in Malawi.
Malawi ranked 173 out of 188 countries on the Human Development Index rankings in 2015. Agriculture is the most important sector of the economy, but the effects of climate change have been particularly pertinent, with sporadic drought and flooding leading to poor-quality soil. This has frustrated attempts to escape rural poverty.
Our investment in Cattle Feedlot will facilitate remedial works to improve the quality of the soil at Kaombe, which has faced severe salinity issues due to drought conditions, helping the farm remain commercially productive for future agricultural activities. This will ensure that up to 85 permanent staff and up to 150 seasonal workers remain employed.
We will work with the owners to develop a long-term strategy and business plan for the farm with the aim of providing support for further smallholder ventures in Malawi.
Remedial waterworks have already been completed at Kaombe, including a canal, pipeline and drainage works, improving irrigation at the farm and supporting the provision of water for smallholders in the local community.
Environmental and social aspects
Kaombe is adjacent to a protected wetland, so in addition to support on the farm’s environmental and social action plan, we are supporting the company through our technical assistance facility to implement a comprehensive environmental and social management system, and water and soil monitoring related to the remedial works.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, East Africa
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Food and agriculture
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Equity
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- December 2017
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.