Addis Ababa, Ethiopia, December 23, 2019 —IFC, a member of the World Bank Group, today announced an investment of up to €50 million in Habesha Breweries S.C. to help the company expand operations in Ethiopia and increase local barley sourcing from smallholder farmers.
The loan is co-funded by the Dutch development bank (FMO) and Dutch banks Coöperatieve Rabobank U.A. (Rabobank) and ING Bank N.V. (ING Bank).
Ethiopia’s brewing industry is fast growing and an important contributor to economic growth, but the sector imports as much as 90 percent of its malt barley needs. In addition to the financing, IFC and FMO will help Habesha support farmers’ access to improved seed varieties and other agricultural inputs and provide best practices on agronomy and business management.
The project is expected to boost income for 15,000 smallholder barley farmers, double farm yields of participating barley producers and create 500 jobs.
“Programs that support local sourcing are critical to linking smallholder farmers to large supply chains, thus creating more economic opportunity and jobs for vital parts of the country’s agriculture sector,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.
Ethiopia is a key market for IFC. Over the past five years, IFC has provided $317 million in new investment commitments and mobilized $50 million across several sectors including agribusiness, small business development and manufacturing.
“Increasing farmer access to improved agricultural inputs such as seeds and fertilizers and building the agronomic and technical capacity of local, smallholder barley producers in Ethiopia will create more jobs and higher efficiency,” said Linda Broekhuizen, FMO’s Chief Investment Officer.
“By being part of this financing, ING is pleased to support the farmer community in Ethiopia and at the same time reinforce the strategy of our appreciated client Royal Swinkels Family Brewers, which invested in Habesha Breweries in 2012. Thanks to our Food & Agri expertise and our longstanding history with many of the largest beverage players in the world, we feel confident to participate in this facility,” said Kiran Sanchit, ING’s Head of Food & Agri EMEA.
“Our partnership with IFC and other lenders is timely and key to growing the malt barley supply chain in Ethiopia. We aim to increase smallholder farmers from 1,000 to 14,000 in the next five years and improve household incomes. This investment has a purpose and feels like the right thing. I am extremely proud that we are able to continue to build and grow the brewery in partnership with the barley farmers and residents,” said Zewdu Negate, CEO, Habesha Breweries.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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About FMO
FMO is the Dutch development finance institution. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.6 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information, please visit www.fmo.nl
About Rabobank
Rabobank is an international financial services provider operating on the basis of cooperative principles. It offers retail banking, wholesale banking, private banking, leasing and real estate services. As a cooperative bank, Rabobank puts customers’ interests first in its services. Rabobank is committed to be a leading customer-focused cooperative bank in the Netherlands and a leading food and agri bank worldwide. Rabobank employed 41,926 people as of 30 June, 2019. Rabobank is active in 39 countries. For more information about the Rabobank go to www.rabobank.com .
About ING Bank
ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s more than 53,000 employees offer retail and wholesale banking services to customers in over 40 countries. ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N). Sustainability forms an integral part of ING’s strategy, evidenced by ING’s ranking as Leader in the banks industry group by Sustainalytics and ‘A’ rating in MSCI’s ratings universe. ING Group shares are included in major sustainability and Environmental, Social and Governance (ESG) index products of leading providers STOXX, Morningstar and FTSE Russell. For more information, visit https://www.ing.com/
About Habesha Breweries
Habesha Breweries S.C. was established by a group of local Ethiopian investors in 2009 and is currently 60 percent owned by Royal Swinkels Family Brewers, which invested in the Company in 2012. Habesha’s shareholders include 8,000 local and individual investors. For more information, visit https://www.habeshabreweries.com/
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