By 2030, Africa’s agriculture and agribusiness markets is expected to triple to reach $1 trillion in value. Africa needs more than $10 billion in new investment annually to achieve the aspired expansion of agricultural output in Africa. Today the average African farm performs at just 40 percent of potential.
In Africa, IFC is pursuing investments in agribusiness value chains, recognizing that 60 percent of Africans derive their livelihoods from agriculture. IFC is helping encourage modern retail in the food sector, increase exports, and improve yields, and support commodity exchanges and financial institutions dedicated to serving farmers and agribusiness enterprises.
Learn more about IFC's work in agribusiness.
Examples of What We Do:
Patisen is a producer of packaged food products in West Africa. IFC provided €2.5 million in equity and €8.5 million in an eight-year subordinated loan. IFC‘s financing supports Patisen’s €23 million project to expand and consolidate its operations in Senegal. IFC’s global expertise will enable Patisen to become a leading regional company using best practices in corporate governance, insurance, financial management, and environmental and social matters.
IFC’s Warehouse Receipts initiative opens new access to finance for Ethiopian farmers by leveraging their own production. Warehouse financing allows farmers access to finance by pledging receipts issued by the Ethiopia Commodity Exchange. The receipts are issued by the warehouse operator when the commodities are stored, becoming an instrument that can be used as a form of portable collateral to request a loan from a bank.
IFC provided $36.5 million in financing to BIDCO a top-ranking and fast-growing agribusiness player in Africa’s consumer goods sector with operations in 16 countries. BIDCO will leverage IFC’s global experience in consumer goods projects to facilitate access to brand positioning expertise. IFC will support 20,000 smallholder farmers in its supply chain through advice and financing
IFC provided $6 million in equity financing to africaJUICE, the first Faitrtrade certified tropical fruit juice producer (passion fruit, mango and papaya) in sub-Saharan Africa and based in the Upper Awash region of Ethiopia. IFC provides technical expertise, global knowledge of industry and markets, and lessons learned from other integrated fresh juice and concentrate producers. IFC will mobilize other funding to reach 1,000 more small scale passion fruit farmers.
Groupe Industriel Madiou Simpara SA, known as GRIMAS, produces carbonated soft drinks, plastic packaging, and carbon dioxide for beverages with headquarters in Mali. IFC provided an €8 million, eight-year corporate loan to support the €33 million project to upgrade operations in Mali and expand in Cote d’Ivoire and Senegal. With IFC’s support, GRIMAS is becoming a stronger regional competitor and a leader in corporate governance, insurance, financial management, and environmental and social matters.