GAFSP Makes its First Transaction – Invests in Bangladesh Food Processing Company PRAN
Washington, D.C. April 24, 2012—The IFC-led Global Agriculture and Food Security Program (GAFSP) – a multilateral mechanism to scale up food security in poor countries – recently approved its first transaction in Bangladesh food processing company, PRAN Group.
PRAN Group subsidiary Natore Agro will receive a $5 million investment from GAFSP’s Private Sector Window and $10 million from IFC to expand production capacity, create 1,800 rural jobs, and integrate small farmers into retail supply chains.
PRAN’s expansion is a response to the increased demand for packaged food products from domestic markets as well as from export markets in India, Africa, and the Middle East.
GAFSP’s support to PRAN increases the availability of affordable, quality food products. In addition, fruit, vegetables, and other inputs will be sourced directly from over 1,700 small farmers.
The project is likely to create 1,200 direct jobs, mostly in rural areas and have a positive impact on the livelihood of approximately 600 more farmers – thereby adding to PRAN’s overall reach to 1,700 farmers and their communities by ensuring consistent demand and fair pricing for their produce.
About GAFSP Private Sector Window
By helping poor countries improve rural livelihoods and food security, GAFSP is contributing to the achievement of the U.N. Millennium Development Goals to cut hunger and poverty in half by 2015.
The Private Sector Window of GAFSP, implemented by IFC, provides innovative financing solutions to sharpen the commercial potential of small and medium agribusinesses by connecting them with local, national, and global value chains. For more information on GAFSP and the Private Sector Window, visit http://www.gafspfund.org.