₦800m Agric Loan Application– Farmers to Benefit: IFC, the largest global development institution focused on the private sector in emerging markets, has agreed to issue $18 million in debt financing to Robust International (Robust), an agricultural company with operations across the Asia-Pacific region and sub-Saharan Africa. This agreement was reached after IFC reached an agreement with Robust.
Robust, which began operations in 2006, is primarily engaged in the trading of specialty crops. These crops include cashews, sesame, ginger, and gum arabic, among others. According to Africa Business Communities, the company plans to use the proceeds from the loan to construct modern warehouses and processing facilities in northern Nigeria. This financing represents one of the first investments in the modern secondary sesame processing industry in that region.
Smallholder farmers will have better access to modern storage and processing facilities as a result of this project, which will also enable Robust to increase the amount of its direct sourcing from smallholder farmers. The storage facilities will relieve farmers of the need to store their own crops in often poor conditions, which leads to high post-harvest losses and unnecessary GHG emissions related to spoiled food, which account for around five per cent of Nigeria’s total GHG emissions. Farmers will be relieved that they no longer have to store their own crops in often poor conditions.
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The financing package includes not only a senior secured loan of up to $9 million from IFC’s own account, but also a concessional loan of up to $9 million from IFC acting as the implementing entity of the International Development Association’s Private Sector Window. In total, the financing package is worth up to $9 million.
According to Naarayan Raaghavan, the Chairman and Managing Director of Robust, “Robust is committed to empowering farmers and enriching local communities and has followed and encouraged sustainable farming practices.”
“We are very pleased to work with IFC on this project, which will provide employment opportunities for the local community while also significantly contributing to Nigeria’s economic growth and value addition in the country’s supply chain. We look forward to seeing this project come to fruition.”
‘The project also involves a deeper engagement with smallholder farmers by supporting them in the adoption of sustainable farming methodologies, encouraging and training them to work towards creating awareness on matters pertaining to environmental preservation, as well as contributing to their overall economic wellbeing,’ he added. ‘The project will also contribute to their overall economic wellbeing.’
Agriculture and related businesses are a significant driver of Nigeria’s economy, accounting for more than 35% of the country’s GDP and providing more than half of the country’s employment opportunities. Many smallholder farmers in the north of the country, which is plagued by conflict and has poverty levels that are five times higher than in the south, can use this industry as a way to lift themselves out of poverty and into a more stable economic position.
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IFC’s Senior Country Manager for Nigeria, Kalim M. Shah, expressed his excitement about the new partnership with Robust, saying, “We are delighted to partner with Robust in its next phase of growth.” “Modernizing agribusiness and improving the sector’s productivity is crucial to supporting economic development and inclusion in Nigeria,” he noted, “especially at a time when pandemic related disruptions and geopolitical tensions are increasing volatility in the sector and impacting food security, further pushing smallholder farmers into poverty.” “Modernizing agribusiness and improving the sector’s productivity is crucial to supporting economic development and inclusion in Nigeria.”
According to Nicolas Marquier, IFC’s Country Manager for Singapore, Malaysia, and Brunei Darussalam, “IFC has a successful track record of supporting Singapore-based companies with ambitions to build their businesses in emerging markets.” “IFC has a track record of successfully supporting Singapore-based companies with ambitions to build their businesses in emerging markets.” Sunday Ojeme The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, has agreed to issue $18 million in debt financing to Robust International (Robust), an agricultural company based in Singapore with operations across the Asia-Pacific region and sub-Saharan Africa.
Robust, which began operations in 2006, is primarily engaged in the trading of specialty crops. These crops include cashews, sesame, ginger, and gum arabic, among others. According to Africa Business Communities, the company plans to use the proceeds from the loan to construct modern warehouses and processing facilities in northern Nigeria. This financing represents one of the first investments in the modern secondary sesame processing industry in that region.
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Smallholder farmers will have better access to modern storage and processing facilities as a result of this project, which will also enable Robust to increase the amount of its direct sourcing from smallholder farmers.
The storage facilities will relieve farmers of the need to store their own crops in often poor conditions, which leads to high post-harvest losses and unnecessary GHG emissions related to spoiled food. Farmers will be relieved of the need to store their own crops because the storage facilities will be available. “Our partnership with Robust is a great example of how Singapore’s private sector can leverage IFC’s innovative financing structures and global expertise to expand in developing countries, helping to alleviate poverty and promote shared prosperity globally,” he added. “Our partnership with Robust is a great example of how Singapore’s private sector can leverage IFC’s innovative financing structures and global expertise to expand in developing countries.”
As part of the agreement, IFC will provide support to Robust in a variety of areas, including the enhancement of its risk management capabilities, the improvement of its environmental and social practices, and the smallholder farmer sourcing and engagement activities.
According to Lee Pak Sing, Assistant Chief Executive Officer of Enterprise Singapore, “Through partnerships, our Singapore trading companies continue to make inroads into new geographies.” She said
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