Nairobi, July 17, 2014—IFC,
a member of the World Bank Group, is lending $36.5 million in BIDCO
to support expansion of the company’s consumer goods operations
into new market categories and create more opportunities for small farmers
to enhance productivity and earn better incomes.
BIDCO is a top-ranking Agribusiness
player in Africa’s consumer goods sector, producing over 40 different
brands of edible oils, bakery fats, shortening agents, margarines, detergents,
soaps and animal feeds. Bidco is active in 16 countries across Africa
and in has over $500 million in annual revenues in East Africa.
Inclusive growth and sustainability
programs are the foundation of BIDCO’s business strategy. The company
has over 30,000 farmers registered on its rolls, with about 10,000 farmers
selling their oil seeds and produce to the company. These farmers
are given training and assistance to enhance their productivity. At the
other end of the value chain, Bidco promotes entrepreneurship and growth
among small and large retailers, traders, suppliers and distributors with
cashless trading facility and using technology for supply management that
ensures quick deliveries. BIDCO also has a strong corporate social responsibility
program. It provides free food and hygiene products to various charities
all through the year; sponsors education for girls and actively participates
in community programs through its peer educators’ group.
Bidco’s Executive Director, Tarun Shah
said, “Bidco has been expanding steadily to meet consumer demand for food
and household products across Kenya and Africa. IFC’s investment
will enable us to set up new manufacturing plants in Kenya, create new
employment for many Kenyans and benefit local suppliers, distributors and
the consumers in Kenya & Africa.”
German Vegarra, IFC’s Regional Head
of Manufacturing, Agribusiness and Services for Sub-Saharan Africa said,
“IFC is eager to partner with dynamic companies like BIDCO, which have
the potential to become Pan African, while benefitting smallholder farmers
and expanding choices for consumers with health benefits.”
Agribusiness is a strategic priority
for the IFC in light of the growing challenges of food security in Africa
and worldwide. Agriculture accounts for nearly half of the continent’s
GDP, and employs 60 percent of the labor force. The World Bank Group estimates
that by 2030, agriculture could develop into a US$ 1 trillion industry
in Sub-Saharan Africa. BIDCO’s efforts in pushing the growth of agribusiness
in Africa will ensure the continent’s well-being in the future.
IFC is expanding efforts to support
agribusinesses through increased investments combined with advisory services.
In its fiscal year ending June 2013; IFC invested $1 billion in agribusiness
in Africa. The corporation aims to double this investment volume
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org
Started in 1985, the Bidco Group has
grown substantially in these three decades with products reaching over
16 countries and employing more than 6,000 people directly in East Africa.
Over the years it has added many new categories and products. It is the
recipient of many awards, the latest being recognized as a Global Growth
Company by the World Economic Forum. Bidco is currently one of the market
leaders in edible oils, fats, margarine, Baking powder, soaps, detergents
and animal feeds in East and Central Africa with sister manufacturing units
in Kenya, Uganda and Tanzania.
The group’s manufacturing hubs are in strategic locations and with well-defined
distribution chains along with supporting farmers across the value chain.
Certified for ISO 9001, 14000, 18000 and 22000 and a pioneer in Kaizen
Management Systems in Kenya Bidco pursues excellence in all systems on
a continual basis.
Some of the world class Brands from
the group include the Super brands Kimbo & Elianto.
More information on htpp://www.bidco-oil.com