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IFC’s First Agribusiness Investment in DRC Supports Local Maize Production


In Nairobi:
IFC

Neha Sud

Phone: +254720348499

nsud@ifc.org

In Washington, D.C.:


IFC

Elizabeth Price

Phone: +1 202 473-4645

Eprice@ifc.org


Lubumbashi, Democratic Republic of Congo, July 25, 2014 — IFC, a member of the World Bank Group, today announced a loan of $18 million to Terra and African Milling Company Congo, to help the company expand its maize farm and mill in Katanga, Democratic Republic of Congo (DRC). By increasing production; Terra will be able to supply maize locally at affordable prices; reducing imports and encouraging food security in Southern DRC.  

Maize meal is the staple food in Katanga with an estimated total demand of at least one million tons per annum.  Nearly all of Katanga province’s maize grain and maize flour are imported today. Terra and the Africa Milling Company Congo will use IFC’s financing to expand their maize farm from 1,500 hectares to 5,000 hectares by 2017. The company’s newly opened mill will produce 100,000 tons of maize meal per annum at its full capacity.  

Terra and Africa Milling Company Congo’s growth will create jobs in Katanga province.  The companies plan to hire about 300 additional local employees. The company is also ensuring that benefits from the project are felt widely. For example, it increased Katanga residents’ access to clean water and lighting by installing boreholes and solar street lamps.


Rahim Dhrolia, the Managing Director of Terra and AMCC, said “IFC’s long-term partnership will enable Terra and AMCC to realize our vision of supplying local, affordable maize meal in Southern DRC.  We are committed to providing nutrition, creating jobs and improving living standards for the people of Katanga”.

Oumar Seydi, IFC Director for Eastern and Southern Africa said, “IFC firmly supports companies like Terra and AMCC, which can multiply food production and create jobs to reduce poverty. As DRC continues to rebuild after conflict, foreign direct investment will be most effective if it can expand beyond the mining sector to help diversify the country’s economy.  IFC and Terra would like to send a strong signal to international investors that agribusiness provides excellent business opportunities in DRC, and has the power to transform local lives.”  

The largest country by area in sub Saharan Africa, DRC has over 80 million hectares of fertile and arable land, and 52 percent of all fresh water resources on the continent.  At full capacity, the agricultural potential of the country could feed one billion people.  Yet, approximately one-third of the food consumed in DRC is imported.  The Government of the DRC has made agriculture the centerpiece of its economic development strategy.


Promoting agribusiness is a key priority for IFC, especially in the face of growing challenges of food security in Africa. In its fiscal year ending June 2013; IFC invested $1 billion in the agribusiness value chain in Africa.  The corporation aims to double this investment volume by 2018.  

About IFC

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

About Terra and African Milling Company Congo

Terra and Africa Milling Company Congo are an integrated maize farm and maize flour milling operation in Katanga, [sponsored by Vinmart Group in DRC and Rai Group in Kenya].  Terra has a 10,000 ha maize farming concession and started operations in 2007.  African Milling Company Congo is a maize mill with 336 tons-per-day maize input capacity in Lubumbashi.  


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In Lubumbashi:
Terra
Serge Mulumba
Phone: +243991735562
pr@africamilling.com