World Bank Group member International Finance Corporation (IFC) has approved a $120m loan to Singapore-based food processor Olam International under a five-year agreement to finance upgrades and expansion of five food processing facilities in Nigeria and India.
According to Olam, the project will benefit local communities by creating employment and new market opportunities for small-scale farmers to sell their crops.
Olam plans to use the investment to develop its Hemarus sugar milling and Spice processing facilities in India as well as Crown Flour Mill, Mechanical cashew processing and Sesame hulling facilities in Nigeria.
The Crown Flour Mill will process imported wheat into flour for domestic bakers.
By 2015, the remaining four facilities will integrate over 45,000 smallholder farmers from surrounding regions into Olam's supply chains allowing them to supply their crops directly to the processing units which guarantees a market for their products.
IFC's agribusiness strategy aims to promote food security, inclusive growth, and environmental and social sustainability in agricultural supply chains.
IFC works with supply chain integrators to provide small farmers and rural businesses with access to finance and inputs such as equipment and seeds, advice and extension services, and access to markets.
