IFC, the world’s largest development organization focused on the private sector in emerging markets, has agreed to lend $18 million to Robust International (Robust), a Singapore-based agricultural company with operations throughout Asia-Pacific and Sub-Saharan Africa.
Robust, which was founded in 2006, primarily trades in specialty crops such as cashews, sesame, ginger, and gum arabic. According to Africa Business Communities, the company will use the loan proceeds to build modern warehouses and processing facilities in northern Nigeria, and the financing is one of the region’s first investments in modern secondary sesame processing.
The project will provide smallholder farmers with better access to modern storage and processing facilities, while also allowing Robust to increase direct sourcing volumes with smallholder farmers. The storage facilities will relieve farmers of the need to store their own crops in often deplorable conditions, resulting in high post-harvest losses and unnecessary GHG emissions from spoiled food, which account for approximately 5% of Nigeria’s total GHG emissions.
The financing package includes a senior secured loan of up to $9 million from IFC’s own account, as well as a concessional loan of up to $9 million from IFC acting as the International Development Association’s Private Sector Window implementing entity.
“Robust is committed to empowering farmers and enriching local communities, and we have followed and encouraged sustainable farming practices,” said Robust Chairman and Managing Director Naarayan Raaghavan.
“We are delighted to collaborate with IFC on this project, which will create jobs in the local community while also significantly contributing to Nigeria’s economic growth and value addition in the country’s supply chain.”
“The project also entails a deeper engagement with smallholder farmers by assisting them in the adoption of sustainable farming methodologies, as well as encouraging and training them to work toward creating awareness on environmental preservation issues and contributing to their overall economic well-being,” he added.
Agribusiness is a significant contributor to Nigeria’s economy, accounting for more than half of all jobs and accounting for more than 35% of GDP. Many smallholder farmers in the country’s north, which has been ravaged by conflict and has five times the poverty rate as the south, benefit from the sector.
“We are thrilled to be partnering with Robust in its next stage of expansion,” said Kalim M. Shah, Senior Country Manager for Nigeria at IFC. “Modernizing agribusiness and increasing sector productivity are critical to promoting economic development and inclusion in Nigeria, especially at a time when pandemic-related disruptions and geopolitical tensions are increasing volatility in the sector and threatening food security, further pushing smallholder farmers into poverty.”
“IFC has a proven track record of assisting Singapore-based companies with ambitions to expand into emerging markets,” said Nicolas Marquier, IFC’s Country Manager for Singapore, Malaysia, and Brunei Darussalam. Sunday Ojeme The International Finance Corporation (IFC), the world’s largest development organization focused on the private sector in emerging markets, has agreed to lend $18 million to Robust International (Robust), a Singapore-based agricultural company with operations in the Asia-Pacific region and Sub-Saharan Africa.
Robust, which was founded in 2006, primarily trades in specialty crops such as cashews, sesame, ginger, and gum arabic. According to Africa Business Communities, the company will use the loan proceeds to construct modern warehouses and processing facilities in northern Nigeria, and the financing is one of the
The project will provide smallholder farmers with better access to modern storage and processing facilities, while also allowing Robust to increase direct sourcing volumes with smallholder farmers.
Farmers will no longer have to store their own crops in often poor conditions, resulting in high post-harvest losses and unnecessary GHG emissions from spoiled food. “Our collaboration 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, assisting in poverty alleviation and promoting shared prosperity globally,” he added.
As part of the agreement, IFC will assist Robust in strengthening its risk management capabilities, improving its environmental and social practices, and engaging smallholder farmers, among other things.