Washington D.C., October 28, 2013—IFC,
a member of the World Bank Group, and the private sector window of the
Global Agriculture and Food Security Program will each invest $3 million
to support growth and expansion of africaJUICE, sub-Saharan Africa’s first
Fairtrade certified company that both grows and processes tropical fruit.
The company is embarking on a $15 million
investment program to triple fruit-processing capacity, and to build a
self-sustaining network of farmers who can supply high-value fruit crops.
It expects this expansion will double its current labor force to about
3,000 employees, over half of whom are expected to be women, and increase
the number of smallholder farmers who supply the company from 70 to about
1,000. IFC Advisory Services will support inclusion of small farmers into
the company’s supplier base.
The expansion plan will be also supported
by the founders of the business as well as the current financiers and investors,
including the Industrial Development Corporation of South Africa and the
Agri-Vie Fund, as well as a US$4 million investment from the Dutch Development
“Support from IFC and GAFSP will help
africaJUICE grow and achieve the potential of the business in Ethiopia.
Through the expansion of our operations, we will enhance the opportunity
for local farmers to access the juice value chain, thereby catalyzing local
community socio-economic development” said David O’Halloran, Director
German Vegarra, IFC Global Head of Agribusiness
said, “IFC sees great potential for inclusive economic growth through
investment in private companies, like food processors, that can be the
link between small farmers and global consumers. These companies can be
stable buyers of crops for small farmers and be conduits for technical
training, access to finance and inputs.”
Donor partners to the GAFSP private
sector window are Canada, the Netherlands, and the U.S. This funding makes
it possible for IFC to invest in riskier projects with strong potential
to promote food security and reduce poverty.
Helping small farmers gain access to
finance, agricultural inputs like seeds and improved infrastructure is
part of IFC’s strategy for improving food security and rural incomes.
IFC made a record $4.5 billion worth of agriculture-related investments
in fiscal year 2013.
GAFSP is a global effort to aid vulnerable
populations afflicted by hunger and poverty. It takes up where emergency
and recovery assistance leaves off, targeting transformative and lasting
change in agriculture and food security within poor countries. Following
commitments by G-8 leaders at the L’Aquila Summit in July 2009 and reaffirmed
by the G-20 Summit in Pittsburgh in September 2009, GAFSP was established
in April 2010. IFC manages the GAFSP private sector window and IBRD manages
the public sector part of the program. For more information, visit http://www.gafspfund.org.
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.
FMO is the Dutch development bank. We
finance companies, projects and financial institutions from developing
and emerging markets. We believe that entrepreneurship is key in creating
sustainable economic growth and improving people’s quality of life. We
specialize in sectors where our contribution can have the highest long-term
impact - financial institutions; energy and agribusiness, food & water.
africaJUICE BV was established in 2007
with the objective of developing juice production companies in Africa that
excel in social and environmental value creation as well as delivering
returns to investors. With one operational company in Ethiopia, africaJUICE
is the first company in sub-Saharan Africa, which grows and processes tropical
fruit, to be Fairtrade certified and is already on target to become one
of the biggest producers and exporters of sustainable juice products from