Somdia exits African milling sector with sale of Gabon’s subsidiary SMAG

GABON – Somdia Group, the agro-industrial subsidiary of the French group Castel, has sold its subsidiary, Gabon Milling and Poultry Company (SMAG), to Ivorian businessman Jean-Marie Ackah for an undisclosed value.  

This transaction, announced on February 25, marks Somdia’s full exit from its milling operations in Africa, following previous divestments in Togo, Cameroon, and Congo.

SMAG has been a cornerstone of the country’s agri-food industry, specializing in the production of wheat flour, livestock feed, eggs and day-old chicks.  

With an annual production capacity of 75,000 tonnes of flour and 32,000 tonnes of animal feed, SMAG has played a vital role in meeting the growing demand for staple food products in Gabon and the broader Central African region.

According to Olivier Parent, CEO of Somdia, the divestiture aligns with the company’s strategic shift to concentrate on its core expertise in agriculture and primary processing.

“This new transaction is part of our strategic desire to adapt our scope of activities to focus on our areas of expertise, which are agriculture and primary processing,” Parent stated in a press release.

The sale of SMAG to Avos, a group owned by Jean-Marie Ackah, marks a new chapter for the Gabonese flour milling sector.

For Avos, the acquisition of SMAG represents a strategic step in its mission to become a dominant player in the agri-food sector across sub-Saharan Africa. Avos is already established in Burkina Faso, Mali, Ghana, and Togo, where it previously acquired Somdia’s milling operations.

The addition of SMAG’s production capabilities will significantly boost Avos’ output, particularly in the flour segment, enabling the group better to serve the growing demand in local and regional markets.

According to Jean-Marie Ackah, his vision for Avos is to create a vertically integrated agri-food business that leverages economies of scale and regional synergies. With SMAG under its umbrella, Avos is well-positioned to strengthen its presence in Central Africa, complementing its existing operations in West Africa.

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