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IFC approves $175 million loan for Olam to expand food processing and opportunities for small-scale farmers


In Washington, DC:
Elizabeth Price
Phone: (202) 458-0387
E-mail: EPrice@ifc.org

Washington, DC, April 21, 2016—IFC, a member of the World Bank Group, will lend $175 million to Olam International, a global integrated supply chain manager and processor of agricultural products operating in 70 countries, to support investment in food processing facilities in Nigeria and India.

The financing will support the Hemarus sugar mill and spice processing facilities in India, as well as the sesame hulling and Crown Flour Mill facilities in Nigeria. These facilities help generate rural employment and provide market opportunities for smallholder farmers to sell their crops, thereby improving the livelihoods of local communities in the region.

Olam’s Group CFO, N. Muthukumar said: “This latest investment strengthens our partnership with IFC. These food processing facilities, located in India and Nigeria, help generate local employment and provide a ready buyer at market prices for farmers in the communities. Olam’s focus on inclusive growth, enabling economic prosperity and social and environmental sustainability in developing nations, is a perfect fit with IFC’s mandate.”

IFC’s Director of Manufacturing Agribusiness and Services, Alzbeta Klein said, “We are pleased to support Olam’s strategy of enhancing value for stakeholders by investing in long-term midstream processing assets that build on the core soft commodity supply chain. Through this investment by IFC, Olam will continue to support small-holder farmers in India and Nigeria, who supply commodities to its processing facilities.”

Agribusiness is a priority for IFC because of its potential for promoting rural incomes and food security. IFC combines investments and advisory services to help the sector address higher demand and escalating food prices in an environmentally sustainable and socially inclusive way. In FY15, IFC invested $3.2 billion across the agribusiness supply chain—from farm to retail—to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers.

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 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

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