Agrochemicals company agrees IFC facility
IFC will provide USD 35 million to agrochemicals player Jubaili Agrotec to support growth, promote environmental best practice and improve food security in Africa.
World Bank Group subsidiary International Finance Corporation (IFC) has signed a USD 35 million financing agreement with Nigeria-based agrochemicals company Jubaili Agrotec.
Under the remit of the fellow World Bank Group subsidiary the International Development Association’s ‘Private Sector Window’, an initiative to reduce political and currency risk for investments in developing countries, USD 20 million of IFC’s financing will be in Nigerian Naira (NGN).
Jubaili imports, produces and distributes agrochemicals across Africa. It maintains a portfolio of 130 crop-protection products such as insecticidal, herbicidal and fungicidal formulations, as well as livestock fodder and fortifying additives, veterinary therapies, fertilisers, seeds and farming equipment.
Established in Lebanon in 1944 and with a presence in Nigeria from 2002, it has since grown to 2,300 employees and expanded into Ghana, Uganda, Tanzania and Kenya.
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Jubaili will use the proceeds to grow its manufacturing capacity across its facilities and further develop its geographical reach in the region.
As part of the deal, IFC will also provide consultancy and advisory services to Jubaili to develop product technology such as drip-irrigation hardware to encourage greater acclimatisation and minimise environmental impact. IFC will also support small-scale farmers in adopting more environmentally sound farming practices with the aim of heightening yields and raising incomes.
In a statement, IFC’s manager for agribusiness and forestry in Africa Samuel Dzotefe said: “Our partnership with Jubaili will contribute to improving food production in sub-Saharan Africa at a time when many parts of Africa, and the world, face rising food prices and food shortages. The region is heavily reliant on imported agrochemicals for crop protection and this partnership will improve the competitiveness of local production, thereby bolstering Africa’s agricultural resilience.”
“Agriculture is a significant part of many African economies and our partnership with IFC will help us to expand across Africa to reach thousands of farmers, helping them to build more resilience in their crops,” said Jubaili’s managing director Rajab Jubaili.
In February three development finance institutions (DFIs) teamed up to provide USD 90 million of funding to support Sub-Saharan agriculture, while in September last year the African Development Bank held the inaugural partnership meeting of its Special Agro-Industrial Processing Zones initiative, intended to foster growth, development and industrialisation in African agriculture.
Other recent developments in the region include the sale of one of Nigeria’s oldest financial institutions to one of its newest in June.