Addis Ababa, Ethiopia, October 31,
2019—IFC, a member of the
World Bank Group, and the Private Sector Window of the Global Agriculture
and Food Security Program (GAFSP), today announced a €20 million investment
in Soufflet Malt Ethiopia to help the company build and operate a malting
plant in Ethiopia,
supporting local farmers and economic growth.
The greenfield investment will help Soufflet Malt Ethiopia, a subsidiary
of French company Groupe Soufflet, modernize Ethiopia’s malt supply chain
and boost local production of the key beer ingredient. The malting plant,
in Addis Ababa’s Lemi Industrial Park, is expected to produce 110,000
metric tons of malt annually.
IFC and the GAFSP Private Sector Window are each investing €10 million
in the project.
Jean-Michel Soufflet, Chairman of Groupe Soufflet, said, “This is Groupe
Soufflet’s first investment in sub-Saharan Africa and marks a strategic
milestone for the company. IFC has been a strategic partner of our group
for many years, and IFC’s support is very valuable for the success of
our greenfield investment in Ethiopia. We are also counting on IFC’s expertise
in agribusiness to help us put in place an extensive network of barley
farmers and improve agricultural productivity in Ethiopia.”
Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa, said, “IFC’s
investment in Soufflet Malt Ethiopia will boost local malt sourcing by
helping smallholder farmers increase productivity, strengthening the country’s
agricultural supply chain. Supporting agriculture is a major focus of IFC’s
strategy in Ethiopia.”
IFC, a long-standing partner with Groupe Soufflet, will also provide advisory
services to about 40,000 smallholder barley farmers to strengthen their
links to the malt supply chain. The longer-term goal is to help double
Soufflet Ethiopia plans to source 100 percent of its barley locally, with
80 percent from smallholder farmers. Currently, about 70 percent of the
malt used by Ethiopian brewers is imported.
Groupe Soufflet is active in 22 countries in Asia, Europe, and South America.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
where they are needed most. In fiscal year 2019, we delivered more than
$19 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.
About Groupe Soufflet
Soufflet is a family group in food and agriculture of international scale.
It operates in the barley, wheat and rice and pulses sectors and provides
support for vine growers. It also operates on the international cereal
markets through its trading subsidiary Soufflet Négoce. It is a major operator
on the world malt market in Europe, Asia, and South America. For more information,
The Global Agriculture and Food Security Program (GAFSP) is a multi-donor
global program focused on increasing agricultural productivity for smallholders
as a way to reduce poverty and increase food and nutrition security. The
GAFSP Private Sector Window, managed by IFC, provides long- and short-term
loans, credit guarantees, and equity as well as technical assistance to
private sector companies and financial intermediaries in eligible IDA countries
to improve productivity growth, deepen farmers’ links to markets and access
to finance and increase capacity and technical skills. It is supported
by the governments of Australia, Canada, Japan, the Netherlands, the United
Kingdom and the United States.