RCL Foods expands to Uganda

South Africa-based RCL Foods has expanded to Uganda by forming a new company HMH-Rainbow in a joint-venture with Uganda’s Hudani Manji Holdings.

As per the agreement, RCL Foods will own a 33.5% equity stake in HMH-Rainbow, and will sponsor the company with funds for its expansion.

The deal is expected to create one of the largest processors and marketers of chicken in both Uganda and East Africa. The company spent $4.66m (ZAR58.9m) on the deal.

Hudani Manji is a poultry company and operates a feed mill, broiler farms and processing plant. It is also the parent company of the Yo Kuku! brand, and is currently owned by the Hudani and Manji families.

RCL, a subsidiary of Remgro, owns Foodcorp, TSB Sugar RSA, Rainbow Farms, and Vector Logistics.

The company said in a statement: "This is an exciting opportunity to enter the East African region with an established reputable partner, and the new venture will create one of the largest processors and marketers of chicken in both Uganda and East Africa."

Hudani Manji chairman Alykhan Hudani was quoted by the Chimp Reports as saying: "The new partnership between HMHL and RCL Foods aims to be the premier producer and distributor of animal proteins in East and Central Africa."

"We have chosen Uganda as the headquarters for HMHRainbow due to its strategic location and friendly investment climate. Aided by the pace of ongoing regional integration, we envision a greater presence in East Africa."