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IFC Invests in Insta Products to Fight Malnutrition in East Africa


In Nairobi:
Neha Sud
Phone: +254-20-293-7403
E-mail:
NSud@ifc.org

In Washington:
Elizabeth Price
Phone: +1-202-458-0387
E-mail:
EPrice@ifc.org


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 agencies.”  

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.


About IFC

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.

 
 
About IFU

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 and Ukraine.
For more information, see
www.ifu.dk.


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