The growth potential of Africa’s dairy sector is drawing both local and international investors.

Major investments are currently flowing into the African dairy industry, as financial institutions and dairy producers work to develop the sector — a natural consequence of mergers and acquisitions taking place across the continent’s markets, reports the international news outlet Dairy Reporter.

Paul Makube, senior economist at South African investment bank FNB, notes that both production and consumption of dairy products in Africa are far below the global average. However, the continent’s growing population, urbanization, and shifting dietary preferences are driving an industry projected to be worth just over USD 14 billion by 2028.

In recent months, Africa’s dairy sector has attracted significant investments, with Kenya, Egypt, Nigeria, and South Africa leading the way.

In October 2024, Egyptian company Beyti announced a USD 123 million investment in production facilities designed to produce 100,000 tons of cheese annually.

In South Africa, notable developments include Milco SA’s acquisition of Clover Industries, Schreiber Foods entering a joint venture with Sundale Dairy, and EXEO Capital investing in Fairview Cheese Company.

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