Leading multilateral agencies such as Africa Finance Corporation (AFC), International Finance Corporation (IFC), European Investment Bank (EIB), Asian Development Bank (ADB), Russian Direct Investment Fund (RDIF), and The African Development Bank (AfDB) announced investments in agribusiness sector in 2019. We feature below six such investments in African countries (Eritrea, Nigeria, Tanzania, Ethiopia), Lao PDR, Russia and Italy
AFC invests US$150 million in Colluli Potash Project in Eritrea
Africa Finance Corporation (AFC) announced a US$150 million strategic investment in Danakali Limited in Eritrea. The AFC’s fund will help develop the Colluli Potash Project located in the Danakali of Eritrea. Colluli Potash Project site contains an abundant and low-cost sulphate of potash (SOP) deposits that help to improve crop absorbency of nutrients and resilience to hostile conditions. The Project is owned by Colluli Mining Share Company, a joint venture between Danakali and the Eritrean National Mining Corporation. Globally AFC invests in high-quality infrastructure assets that include power, natural resources, heavy industry, transport, and telecommunications. (Read More)
EIB & Iccea Banca provides US$221 million to Italian SMEs and agribusinesses
European Investment Bank (EIB) signed an agreement with Gruppo Bancario Cooperativo Iccrea (Iccrea Banca) to provide US$221 million loans for Italian SMEs and the development of the agricultural sector. The new loan will boost the Italian small industries and farm productions in rural areas of the country. The agreement with EIB will help 14 of the Iccrea Group’s banks to provide financial assistance to small entrepreneurs and farmers. The new loan from EIB is intended for businesses with fewer than 250 employees operating in all productive sectors: crafts, industry, retail, tourism, and services, with 25% reserved for agriculture-related business. The loans can be allocated for the extension, purchase, construction, and refurbishment of buildings; the purchase of equipment, plant, vehicles or machinery; expenses, including research & development costs; and additional charges and intangible assets connected to the projects. (Read More)
IFC invests in Soufflet Ethiopia to enhance malt production
International Finance Corporation (IFC), a member of the World Bank Group announced a $22 million investment in Soufflet Malt Ethiopia to increase malt production in Ethiopia.Soufflet Malt Ethiopia is a subsidiary of French company Groupe Soufflet. The investment will help modernize Ethiopia’s malt supply chain and boost production of the key beer ingredients.
Soufflet Ethiopia plans to source locally produced barley with 80% from smallholder farmers. At present, nearly 70% of the malt used by Ethiopian brewers is imported from other countries. Groupe Soufflet is active in 22 countries in Asia, Europe, and South America. The investment by IFC will boost local malt sourcing by helping smallholder farmers increase productivity, strengthening the country’s agricultural supply chain.
ADB provides $140mn to Lao PDR for Agriculture development
The Asian Development Bank (ADB), a regional development bank based in Manila, signed three loan agreements worth $140 million with the Government of the Lao People’s Democratic Republic (Lao PDR) to develop the country’s agricultural & education sector. The loan will help increase the province’s agricultural productivity, including using appropriate technologies, boosting rural connectivity, and climate resilience.
RDIF & UPL invest in Russian agricultural sector
The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announced a joint investment with Indian agricultural solutions provider UPL Limited in Russian agricultural sector. At present, UPL offers around 40 products in Russian markets, including crop protection and biological solutions across the country through 100 distributors in over 20 regions. UPL strengthens food security in over 130 countries by offering world-class technologies and solutions for sustainable agriculture.
AfDB with AFAP to foster fertilizer market in Nigeria and Tanzania
The African Development Bank (AfDB), along with African Fertilizer and Agribusiness Partnership (AFAP), grants $5.4 million to provide benefits to support fertilizer value chains in Nigeria and Tanzania. The fund will provide benefits to smallholder farmers in both countries. The Partnership has significant experience in supporting the agricultural value chain across the African continent. (Read More)