• Friday, June 14, 2024
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IFC invests $23.3m in Nigeria’s cocoa processing to boost export

IFC invests $23.3m in Nigeria’s cocoa processing to boost export

Through an investment of $23.3 million investment in Johnvents Industries Limited, the International Finance Corporation (IFC) will help Nigeria increases its cocoa processing capacity.

The IFC investment will support Johnvents expand its processing operations and increase its export capacity while impacting the livelihoods of thousands of smallholder farmers.

The partnership between both organisations was announced in a post on X (formerly Twitter) by Makhtar Diop, managing director of IFC, on Wednesday.

“IFC is committed to growing agribusinesses in Nigeria and across Africa,” Diop said in his post on X.

On its part, the IFC says the partnership aims to help develop Nigeria’s cocoa value chain, emphasising the cash crop contribution to the country’s non-oil export where it is top on the list.

Diop said IFC’s loan to Johnvents will strengthen the company’s operations, develop Nigeria’s cocoa value chain while also providing job opportunities for farmers.

The $23.3 million will allow Johnvents to expand its cocoa processing plant in Ondo State and double its production capacity to up to 120 metric tons of cocoa per day, helping to provide steady incomes for farmers in its supply chain.

“The financing package includes an $8.5 million loan from IFC’s own account, a $6.3 million loan equivalent in Nigerian naira with support from the local currency facility of the International Development Association’s private sector window, and a $8.5 million loan by the private sector window of the Global Agriculture and Food Security Programme,” Diop said.

To support Johnvents’ sustainability efforts, IFC’s loan will enable the company to replace inefficient diesel generators and wood-based boilers with a new efficient power generation system that uses natural gas to produce electricity and thermal energy, resulting in fewer emissions.

As a company, Johnvents has a target to achieve 100 percent traceable cocoa, with at least 90 percent certified, by 2027, and to improve traceability protocols for Nigeria’s cocoa produce for international markets.

“IFC’s partnership with Johnvents marks another giant step in our commitment to transform Nigeria’s cocoa sector and agriculture industry,” John Alamu, group managing director of Johnvents, said.

Alamu said the partnership will strengthen the company’s operations in Nigeria, as well as its commitment towards creating a traceable cocoa value chain.

Also, he remarked that the new partnership will double the company’s cocoa production and export potential, while ensuring that more value is delivered to stakeholders.

By supporting Johnvents, IFC is allowing the cocoa company to meet higher demand and access new markets, while boosting Nigeria’s competitiveness in the global cocoa market, and increasing the country’s export earnings.

In April 2024, Johnvents reaffirmed its commitment to driving cocoa sustainability and food safety in Africa’s biggest nation.