1. Introduction
October 2020
Building a productive, inclusive and globally competitive
poultry sector in the Southern Africa region

2. 2Introduction to the SACAU Poul ...AMS
Poultry will play an important role to feed and employ Southern Africa’s young,
fast growing population – but currently the local sector is underdeveloped
A need to feed and employ
Africa’s growing population…
…agriculture and especially
poultry can help meet this need…
…but Southern Africa’s poultry
sector is underdeveloped
population of Sub-Saharan
Africa is forecasted to double
between 2017 and 2050
2x
annual growth of household
consumption driven by a
rising middle class
3.8%
of Sub-Saharan Africa’s
population is currently
undernourished
20%
size of Africa’s poultry meat
and egg industry$25B
expected annual growth rate
of Africa’s poultry/egg sectorIt`s
actual yield of feed grain in
(Southern) Africa vs. ~65% in
North America/Europe/China
15%
of poultry breeding cost is feed in
Southern Africa; high protein
concentrate feed is not produced
at commercial scale in most
African countries & thus imported
70%of employment in Sub-Saharan
African countries is in
agriculture
30-70%
Poultry content of protein is
higher than any other life
stock-derived food and
contributes to the reduction of
micronutrient deficiencies
throughout the population and
especially children
€€€€
of South Africans will live in
urban areas in 203073%
Is one of the most affordable
source of animal protein with
lowest environmental footprint
22gr
of poultry products are currently
imported from mass-scale producer
countries like Brazil and the USA
20%

3. 3Introduction to the SACAU Poul ...AMS
This initiative’s mission Two tracks to drive impact
This initiative’s goals The geography it will cover
• Improve performance of the entire value chain of poultry and
its related inputs and products (i.e. poultry meat, eggs, vaccines,
feed)
• Reduce dependency on imports of chicken and related
products in the region
• Catalyze investments and innovations that deliver better
outcomes on multiple fronts and at scale
• Drive a farmer-led food systems transformation agenda
• Foster the growth and development of a productive, inclusive
and globally competitive poultry sector in the Southern Africa
region
• Focus on more industrialised markets with an emphasis on
consumer and nutritional benefits
• Focus on smallholder farmer markets with an emphasis on
improving the livelihood of smallholder farmers
2
1
• Botswana
• Lesotho
• Madagascar
• Malawi
• Mozambique
• Nambia
• Seychelles
• South Africa
• Swaziland
• Tanzania
• Zambia
• Zimbabwe
This initiative aims for a productive, inclusive and globally competitive poultry
sector in the Southern Africa region
• Drive action both on regional level in
Southern Africa, as on individual
country level

4. 4Introduction to the SACAU Poul ...AMS
This initiative will take a food systems approach to positively impact the poultry
industry, and will build on partners and supporters to bring in their expertise
• Target 10 million poultry smallholder Farmers-
SHFs/individuals and 50 to 100 agricultural SMEs across
all twelve participating countries in the next 5-10 years
• Push for use of inclusive finance mechanisms to address
the significant finance gap in the agriculture sector
• Increase trade in poultry and its related products
• Promote the involvement of young agripreneurs (50/50
male/female ratio)
• Work in increasing B2B partnerships between large
commercial producers and SMEs
• Review the value chain by market to identify bottlenecks we
need to resolve, then we start with the most pressing issues
• Enhance the levels of productivity by providing linkages
between actors in the value chain
• Make systemic changes to increase local production
efficiency
• Develop repeatable model that can be used in multiple
countries
• Continue to improve the sustainability track of poultry;
poultry products carbon footprint is currently half of any other
animal footprint, but improvements still to be found both in
poultry products and inputs
• Increase use of sustainable farming practices e.g. rotating
crops, integrating poultry and crops, managing water wisely
• Reduce waste and loss
• Promote climate-smart production enhancement for
poultry and feed crops
• The WHO has set the Safe Level of Protein (SLP) intake at
0.83g per kilogram of body weight per day, which most of
participating countries don’t meet
• Due to limited access to affordable poultry products, there
is low consumption of poultry products across Africa
• Furthermore, need to increase the level of awareness of
nutritional value of poultry products across the chain
• Reduce Minimum Residue Levels (MRL) in chicken and
eggs
Efficient
Economic &
social inclusivity
Nutritious &
healthy
Sustainable

5. 5Introduction to the SACAU Poul ...AMS
There are several factors hindering productivity in Southern Africa; we need to
build an ecosystem of partners to jointly solve all of them
Trade deficit
in the region
Organizational structure,
access to finance &
technical assistance
Animal health
Breeding factors Climate
conditions
Import and dumping of
poultry products
Awareness of
nutritional value
across the chain
Quantity & quality of
inputs

6. Improving regional trade in
poultry and related products
Increasing local production of
quality feedstock
Improving consumer
awareness and affordability of
poultry products
1 2 3
SACAU will initially focus on 3 critical areas – after which we will further progress
tackling other issues together with partners

7. Improving regional trade in poultry and related products
Overall impact
1
Create a conducive environment for poultry sector development on all levels by:
Example activities - to be defined with interested partners
• Review issues impeding trade in poultry products in the region
• Work with regional economic communities (e.g. SADC) to review and suggest
specific policies that will ease the movement of poultry and its related products in
the region
• Enhance industry advocacy to create an enabling operating environment and
building business cases for trade regulation change
Improving intra-regional trade by advocating for regional and
national policies that promotes fair trading within the region – which
gives poultry producers access to a larger market
Creating a multi-stakeholder platform advancing and supporting a
more collaborative and coordinated industry development for all
participating countries, initially focusing on trade and feed but
expanding over time to address a magnitude of issues

8. Increasing local production of quality feedstock
Overall impact
Example activities - to be defined with interested partners
2
Create a strong poultry feed market than can provide quality & affordable feedstock
to meet a large share of local feed demand, affecting several stakeholders:
• Establish decentralized feed mills to supply local producers
• Provide technical and business training to feed farmers and processors
• Engage with government and the industry to control quality and availability of feed
• Increase feed processors linkages to agro-dealers to enhance productivity through
increased access to capital
• Incentivize farmers to go into the production of crops used in the production of
animal feed such as soybeans, rapeseed, and sunflower
• Increase crop productivity for feed: strive to use less land to farm the same acre for
feed protein source sustainably
Feed farmers & producers: increased farm yields and overall
production due to higher yield seeds, better access to finance
Poultry farmers: increased poultry yields and production, lower costs
of production (feed currently makes up ~70% of production costs)
Consumers: reduction in the cost of production will bring down the
cost of poultry for consumers
Young agripreneurs: targeted development of young agripreneurs
(50% female) along the product and feed value chains

9. Improving consumer awareness and affordability of poultry products3
Overall impact
Example activities - to be defined with interested partners
Build a better understanding of the importance of protein consumption and
increase the access to affordable, high quality poultry products. We will
especially focus our efforts on the following communities
• Run marketing campaigns to target urban and rural consumers using tailored
messaging and channels to increase usage and consumption of poultry products
• Increase awareness of poultry as a cheaper source of protein for a healthy diet
across the value chain
• Work with value chain players to keep price at an affordable rate to make poultry
products accessible to all
Rural communities: Increase access to affordable, high-quality
protein for rural households
Urban communities: Widespread access to a wide array of quality
and affordable processed poultry products
Children: Access to at least one poultry-based protein intake in a
balanced meal a day

10. 10Introduction to the SACAU Poul ...AMS
Approach to growing a multi-stakeholder platform to accelerate a more
coordinated & collaborative sector of poultry and related products in Southern Africa
Blueprint: 2020 - early 2021
• Define platform strategy and markers of success
• Identify key sector issues in region and in test countries
• Set initial priority areas with initial set of partners
Accelerate: 2022 - 2023
• Codify learnings from resolving initial set of issues into a
repeatable model to scale across remaining countries
• Test approaches for resolving remaining issues with a
broader set of partners on the platform
Validate: 2021-2022
• For priority areas, identify bottlenecks and interventions
for test markets
• Run test and capture learnings of approach for priority areas
• Further secure partners to tackle (a larger set of) issues
This initiative builds a multi-stakeholder platform advancing and supporting a more coordinated and collaborative sector development,
leveraging public/private partnerships to effectively develop the sector at scale. The initiative has identified 8 critical sector issues that need
resolving; it starts with an initial focus on 3 issues (trade, feed, awareness/affordability), and leverages partners to address more issues over time.
SACAU drives the initiative and combines delivering action on the ground on its focus areas with being an integrator across partners that tackle
other issues across the chain, to ensure this initiative delivers holistic, systemic change.
SACAU leverages its uniqueness and the associated political capital that is associated with farmers’ organizations by building on 1)
existing assets with supporters in the key food systems elements and 2) leveraging existing relevant organizations with a regional scope to
support a regionally determined ambition and action driven agenda.
Scale: 2024 and beyond
• Scale initiative and priority areas into remaining
countries
• Scale down direct involvement and fully handover
to local supporters and governments, ensure
sufficient support during the transition

11. 11Introduction to the SACAU Poul ...AMS
Key building blocks to ensure successfully delivery are being agreed with our partners
Programme management Sustained investments Risks and mitigations
• Implementation of this programme will take
place at both the regional and country level
• Regional level
– The initiative will be led by one fulltime senior staff,
one fulltime technical assistant and one secretary –
supported by a steering committee
– Regional coordination and support center will be
housed under SACAU’s already established special
purpose vehicle (SACAU Development Enterprises
(Pty Ltd))
• Country level
– We will leverage our local partners and supports that
can provide support on the ground for each of the
countries we are working in
– We will set up working team meetings and SteerCos
for countries, with a clear link to the regional level
• It is estimate the initiative will need ~$10M over
its full life run and ~$500K for the initial 2 years.
Funds for the initial two years will be sourced
through:
– Grants from foundations, bilateral and multilateral
– Soft debt from development finance institutions and
first-loss grantee vehicles from foundations and
bilateral
• The initiative has the strategy to raise resources
as we go, but will ensure that at any single point
we have a cash flow buffer to cover 24 months
• SACAU has a special investment vehicle
through which this initiative will be run
• Furthermore, we will leverage what already
exists with potential partners on the ground
• Model not repeatable across countries
– Testing in different countries will allow us to gather
varied learnings
– Scaling will be done gradually through a track system
allowing us to course correct
• Competition from cheaper imports
– Lobbying government to either impose or enforce
import ban and tariffs on imported poultry
• Insufficient resource availability
– A clear understanding of the poultry and feed value
chains will help us identify bottlenecks
– Close collaboration with farmers and processors will
ensure resources are available when needed
– Effective financial and resource planning will ensure
resource availability

12. 12Introduction to the SACAU Poul ...AMS
This initiative is attracting interest of a broad set of system actors, both public and
private actors that work across the broader poultry value chain
Development implementing organizations
Farmers’ organizations
Inter-governmental bodies
Poultry producers & feed manufacturers
Regional Economic communities
Research and knowledge institutions
Private sector enterprises
Health and nutrition institutions
Environmental/climate institutions
Financial institutions
Poultry producers’ associations, Farmers associations