Mozambique’s Chicoa fish farm has secured $1.5m Series A funding from Goodwell Investments, a Netherlands-based investment firm focused on financial inclusion, fintech and inclusive growth.
Founded by Gerard McCollum and Damien Legros in 2015, Chicoa fish farm was set up to address the shortage of protein in the continent through the provision of fish.
Africa produces just 2% of the world’s aquaculture production, with the majority confined to Egypt. This is not enough to meet the supply which is in a crisis, compounded by Africa’s rising population, which is expected to double by 2050.
Chicoa fish farm intends to use the funds to transit to its next stage of growth — the processing and distribution of frozen tilapia products.
To facilitate this growth, plans include extending production facilities, the installation of a processing plant and including local small-scale farmers in its model. At scale, Chicoa will produce over 5,000 tons of tilapia per annum, putting more than $10M of direct income into the local economy each year.
“We are delighted that Goodwell has joined us on this really exciting journey to develop fish farming as an industry in Mozambique,” commented Gerry McCollum, CEO of Chicoa Fish Farm. “Being a first-mover is really challenging, but also hugely impactful. Not only do Goodwell bring a wealth of experience to the table, but their philosophy of supporting for transformative businesses in areas of most need makes them a perfect partner for us.”
Mozambique, for example, imports nearly double the value of fish products it exports. Further, regional aquaculture businesses currently satisfy just 6% of the total demand for fish across the Southern Africa region.
“The opportunity to develop the aquaculture industry to meet the local and regional demand is clear,” notes Dhanyal Davidson, Senior Investment Associate at Goodwell Investments. “The sector can play a key role in the economic development Mozambique by providing affordable, high-quality protein, creating jobs and generating income for local farmers, and promoting broader regional development.”
Goodwell joins long-term Chicoa Fish Farm investor and leader in sustainable aquaculture investments, Aqua-Spark. Amy Novogratz, Founder and Managing Partner at Aqua-Spark commented, “We are excited about Goodwell Investments joining the investor base of Chicoa. Finding a high-quality partner like Goodwell, committed to joining us for the long-term development of regional food security, keeps Chicoa’s vision on track.”
By developing a vertically-integrated solution to kick-start the freshwater aquaculture industry in Mozambique, Chicoa helps to improve the lives and incomes of local fish farmers and increase the sustainability and stability of food supply across Southern Africa.
