Nairobi, April 3, 2017 — IFC, a member
of the World Bank Group, today announced a combined investment and mobilization
of $11 million into Kenyan company Insta Products, which produces ready-to-use
therapeutic food. A high-calorie fortified peanut paste, the food is used
for emergency feeding by relief organizations, like UNICEF and the World
Food Program, to treat people suffering from acute malnutrition across
East Africa and Yemen.
Amid the worst famine crisis since 1945, close to 70 percent of Insta’s
therapeutic foods are being used to treat drought-related malnutrition
in Somalia, Kenya, South Sudan and Uganda.
Nearly half of all deaths
in children under five years can be attributed to malnutrition. Malnutrition
in children can lead to poor cognitive development, learning capacities
and increased risk of mortality. UNICEF
estimates that 36 percent of children in East and Southern Africa show
signs of stunted growth.
IFC mobilized investment will help Insta expand its operations and supply
its therapeutic food to an additional 350,000 people annually, in emergency
zones in East Africa and beyond. Insta is currently the largest manufacturer
of ready-to-use therapeutic food in East Africa, and a top five supplier
to UNICEF globally.
“IFC’s investment will allow Insta to ramp up its production of therapeutic
food to reach more people suffering from malnutrition in conflict-affected
areas and emergency zones. You cannot imagine the difference IFC’s vote
of confidence is creating in Insta’s performance and the results in the
lives of these little children,” said Dhiren Chandaria, CEO of Insta Products.
Oumar Seydi, IFC Director for Eastern and Southern Africa said, “Insta’s
products are helping people afflicted with acute hunger in the drought-affected
Horn of Africa. IFC is committed helping private companies like Insta to
be part of the solution on crisis relief alongside governments and humanitarian
As part of the $11 million investment, $3.5 million will be provided through
the IFC’s Global Agriculture and Food Security Program. Donor partners
to the program are the governments of Canada, Japan, the Netherlands, the
U.K. and the U.S. This funding makes it possible for IFC to support projects
with strong focus on food security and poverty reduction. An additional
$4 million of the mobilized funding is provided by IFU, the Danish investment
fund for developing countries.
“We are very pleased to provide financing for Insta, as their products
are extremely important in combating acute hunger and helping vulnerable
people to survive,” said Tommy Thomsen, CEO of IFU.
Supporting agribusiness and food security are cornerstones of IFC’s strategy
in Africa. Agriculture employs over half of Africa’s labor force, and
has a strong impact on reducing poverty and driving economic growth. The
World Bank estimates that by 2030, agriculture could develop into a $1.0
trillion industry in Sub-Saharan Africa.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.
About Insta Products
Insta Products is a privately owned Kenyan food business manufacturing
foods for the food assistance market since 2003. Since 2009, It has
been manufacturing excellent quality, reasonably priced, ready to eat foods
(“RUTF and RUSF”) that provide essential nutrition to high need populations.
These foods are purchased and distributed by food aid organizations, NGO’s
and distributed worldwide. The workers and shareholders are passionately
committed to manufacturing the highest quality, safest, and most nutritious
food aid products available.
Global Agriculture and Food Security Program (GAFSP)
The Global Agriculture and Food Security Program is a multilateral mechanism
to assist in the implementation of pledges made by the global community
to support country-led investment plans. GAFSP Private Sector Window (PSW)
plays a catalytic role by supporting private sector investment projects
and promoting sustainable agriculture in developing countries. GAFSP aims
to improve the livelihoods of SMEs and small hold farmers through sustainable
solutions to improve access to finance and reduce risks in agriculture.
GAFSP is funded by five donors including the Netherlands, Canada, Japan,
United Kingdom through DFID, and the United States.
IFU – Investment Fund for Developing Countries provides risk capital and
advice to companies wishing to set up business in Africa, Asia, Latin America
and parts of Europe. Investments are made on commercial terms in the form
of equity and loans. The purpose is to promote economic and social development
in the investment countries. IFU acts as fund manager for amongst other
the Danish Climate Investment Fund and the Danish Agribusiness Fund. IFU’s
head office is located in Copenhagen, and regional offices are located
in China, Singapore, India, South Africa, Kenya, Ghana, Nigeria, Colombia
For more information, see www.ifu.dk.