Washington, DC, April 7, 2015—IFC, a
member of the World Bank Group, and the private sector window of the Global
Agriculture and Food Security Program today announced support for Nedbank’s
$ a $50 million facility to help commodity traders in Sub-Saharan Africa
import agricultural commodities and export cash crops.
Signed under IFC’s Global Warehouse Finance Program, the facility will
first finance rice importers in Liberia, a country heavily impacted by
Ebola. Food security is critical in Liberia, where the economy is suffering
due to border closure and restrictions on air travel. Through the
facility, IFC and GAFSP will provide risk mitigation to Nedbank to support
lending to the agriculture sector against warehoused commodities. Nedbank
will lend to rice traders in Liberia to ensure that food is delivered to
the country without delay.
“Working with IFC, we intend to use our expertise in commodity finance
to keep trade active in those countries in Sub-Saharan Africa. Nedbank
is willing to expand its operational reach to commodity traders in this
region and is grateful to launch the new collaboration with IFC today,”
said Sekete Mokgehle, Head of Global Commodity Finance of Nedbank Capital.
German Vegarra, IFC’s Regional Head of Manufacturing, Agribusiness and
Services for Sub-Saharan Africa said, “The private sector has a crucial
role to play in containing the economic effects of Ebola. By partnering
with Nedbank, IFC and GAFSP will support commodity trade in Liberia, to
maintain economic activity and ensure food security in the country.”
Donor partners to the Private Sector Window of GAFSP are the governments
of Canada, Japan, the Netherlands, the United Kingdom and the United States.
This funding makes it possible for IFC to invest in riskier projects with
strong potential to promote food security and reduce poverty.
Marcel Beukeboom, Head of Food and Nutrition Security at the Ministry of
Foreign Affairs of the Netherlands said, “IFC is financing this facility
with support from the United States, Canada, and the Netherlands under
GAFSP. Food security is depending on trade and investment. This support
through IFC and GAFSP to rice importers in Liberia is securing food supply
and economic activity for the longer run. It is very important to invest
in this region at this very moment, hopefully more investments will follow.”
The World Bank Group is mobilizing $1 billion in financing for the three
countries hardest hit by the Ebola crisis. This includes $518 million for
the emergency response. The funding is helping Guinea, Liberia and Sierra
Leone provide treatment and care, contain and prevent the spread of infections,
help communities cope with the economic impact of the crisis, and improve
public health systems. IFC aims to deliver at least $450 million in commercial
financing that will enable trade, investment and employment in Guinea,
Liberia and Sierra Leone.
To find out more about the World Bank Group’s Ebola response, visit www.worldbank.org/ebola
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 about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
Nedbank’s participation in this facility is through its Global Commodity
Finance business unit. The GCF team covers all aspects of commodities
financing from procurement of raw commodities to production and consumption.
The business finances mainly commodity-based transactions across
Africa focusing primarily on agricultural commodities as well as energy
and metals, by meeting the working capital requirements of borrowers across
the value chain of exchange-tradable commodities. Our funding solutions
include pre-export finance, borrowing base financing, collaterally managed
agreements, renting credit facilities, payment undertakings, purchase letters
of credit, confirmation and discounting of letters of credit and customized
For more information, visit www.capital.nedbank.co.za
IFC Global Warehouse Finance Program
IFC’s Global Warehouse Finance Program (“GWFP”), created in 2010, aims
to increase working capital financing to farmers and agricultural players
by leveraging their production. The program supports the agriculture sector
by providing banks with liquidity or risk coverage backed by warehouse
receipts or other inventory financing schemes, which are used to provide
financing in the form of short term loans to producers and traders ahead
of export. To date, IFC has financed US$5.1 billion commodity finance transactions
in more than 20 countries. The program is expected to reach up to 241,000
farmers across emerging markets in all regions and contribute to food availability
for 15 million people by 2017.
Global Agriculture and Food Security Program (GAFSP)
The (GAFSP) 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.