Nairobi, Kenya, July 5, 2018 – IFC,
a member of the World Bank Group, and the Global Agriculture and Food Security
Program today announced a $4 million loan to support the expansion of Global
Tea & Commodities and its subsidiaries. The financing will benefit
local farmers in Malawi by boosting production and exports of fair-trade
certified macadamia and coffee. In addition, IFC is also considering
another $4 million financing for the company’s operations in Kenya.
Global Tea is the largest coffee producer
and a leading macadamia producer in Malawi. It exports macadamia nuts globally
to buyers, including Intersnack in The Netherlands, Marubeni in Japan,
and to coffee buyers, including Starbucks. The group produces packed tea
in Kenya under the Baraka Chai and Kericho Gold brands, the latter of which
dominates the premium tea and fruit and herbal infusions segment in East
Africa. It also exports packed tea from its factory in Mombasa to other
markets in Africa and Asia, Australia, European Union, Middle East, South
Africa, United Kingdom, and United States.
Global Tea will use IFC’s financing to expand its operations in Malawi,
including planting more macadamia trees, replanting existing coffee plantations
and the developing a coffee out-grower program to support 3,300 smallholder
farmers. The company also plans to explore climate smart and renewable
energy solutions at its plantations to reduce water consumption and help
offset diesel fuel with solar power. IFC will also provide Global Tea with
advisory services on its renewable energy and smallholder coffee programs.
Nadeem Ahmed, the founder and chairman of Global Tea, said, “Our partnership
with IFC will help Global Tea expand the production of single-origin macadamia
and coffee, creating more than 900 jobs for farmers who supply to the group.
We chose to work with IFC as it takes a long-term view of our partnership
and adds value beyond financing, in areas like corporate governance, environmental
and social standards.”
Mary Jean Moyo, IFC’s Regional Head of Industry for Manufacturing, Agribusiness
and Services, said, “By investing in companies like Global Tea, IFC supports
African branded products and supports livelihoods for local farmers. We
are advising Global Tea on climate smart and environment-friendly agricultural
practices, which should boost sustainable production of commodities in
IFC and GAFSP will also support Global Tea’s processing operations in
Kenya. The company plans to increase packaging capacity at its factory
in Kenya, which will help it source an additional 5,000 metric tons of
tea from tea farmers and local factories directly and via auction.
About Global Tea
Global Tea was founded by Nadeem Ahmed in the United Kingdom in 1992. The
Group has been operating macadamia and coffee plantations in Malawi since
2001 and tea packing factories in Kenya since 2004. Global Tea is also
the largest buyer of teas in Africa, having purchased 18 percent of Africa´s
total Tea production in 2017.
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
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
The Global Agriculture and Food Security Program (GAFSP) is a global effort
that pools donor resources to fund programs focused on increasing agricultural
productivity as a way to reduce poverty and increase food and nutrition
security. GAFSP targets countries with the highest rates of poverty and
hunger. The public sector window helps governments with national agriculture
and food security plans. The private sector window, managed by IFC, and
supported by the governments of Australia, Canada, Japan, the Netherlands,
the United Kingdom and the United States, provides long- and short-term
loans, credit guarantees, and equity to private sector companies to improve
productivity growth, deepen farmer’s links to markets, and increase capacity
and technical skills.