This investment was made when British International Investment was named CDC Group.
We have now exited this investment. This is what we achieved.
Achieved impact
In 2017, we invested $5.5 million in Cattle Feedlot Company. Our investment was intended to support the remedial irrigation works required on one of the farms, and in the longer term provide an agricultural development platform in Malawi.
At the time of exiting this investment in June 2022, remedial works to reduce the soil salinity and reverse yield decline had been completed for approximately 500 hectares, thereby preserving over 300 jobs.
During the time of our investment, the company strengthened its environmental, social and governance systems and processes in line with good international practice, including through our technical assistance support.
We exited our investment to AgDevCo, an agricultural impact investor. Due to their specialised knowledge and local presence, we are confident that AgDevCo is well-placed to support the company’s future growth plans and ensure impact sustainability after our exit.
Expected impact
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.
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2024
- Project number
:
An identifier number shared by investments in the same project.
- D2453
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Exited
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Southern Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Malawi
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Food & Agriculture
- Investment type :
- Debt
- Start date :
- December 2017
- End date :
- June 2022
- Amount :
- $5.5m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Malawi
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
