Antananarivo, Madagascar, March 21 2015—
IFC, a member of the World Bank Group, and the Global Agriculture and Food
Security Program announced an investment of $3 million in SMTP
Group to expand the company’s poultry operations in Madagascar, creating
jobs, increasing food supply and supporting economic recovery in the country.
The financing will be issued in Malagasy Ariary, helping SMTP limit foreign
Three of the SMTP Group’s
subsidiaries – Agrifarm, Agrival and Mabel – will benefit from the investment.
The companies will use the funds to double the production of day-old chicks,
increase supply of animal feed, and will set up a modern chicken slaughterhouse,
which will supply over 15,000 tons of chicken meat per year.
SMTP’s expansion will also
help farmers in Madagascar, who supply maize for animal feed production.
As the Group’s poultry operations grow, the number of farmers supplying
maize and other inputs is expected to increase from 1,200 to 4,000. SMTP
will advise farmers on how to increase their productivity and revenues,
providing them with hands-on assistance, fertilizers and agricultural inputs.
Poultry production is a way of life for many
rural families in Madagascar. Nearly all poultry is grown in non-industrial,
backyard operations, with little attention to health and safety standards.
As a result, Madagascar’s poultry sector is not competitive globally,
given its lack of industrialization and scale. IFC will advise SMTP on
design of the new poultry farm and slaughterhouse, ensuring that the facilities
meet the international health and sanitary standards required for meat
Danil Ismael, the Chairman of SMTP said,
“The investment will enable SMTP to expand its poultry operations despite
the challenging economic environment in Madagascar. We are committed to
work closely with IFC to adopt international best practices, so we can
deliver high-quality food products to Malagasy consumers”.
Oumar Seydi, IFC Director for Eastern and
Southern Africa said, “IFC and the Global Agriculture and Food Security
program’s investment in SMTP supports the growth of a local company which
will increase food supply, create jobs, support thousands of farmers in
Madagascar. By introducing international best practices, SMTP will help
make Madagascar’s agribusiness sector globally competitive, which is vital
for the country’s economic recovery.”
Supporting agribusiness along the value chain
is a cornerstone of IFC’s strategy in Africa. Agriculture employs over
half of Africa’s labor force, and has a strong impact on micro, small
and medium-sized enterprises.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
SMTP group is a conglomerate
in Madagascar, with activities in agribusiness (including industrial bakery),
plastics, packaging, woven polypropylene, construction and civil works,
automobile dealership, real estate (residential and commercial).