ABC Fund has invested a total of EUR 4.21mn in a Nigerian microfinance institution and three food production businesses in Benin, Mali and Uganda.
In Benin, the fund has invested EUR 800,000 in Africa Négoce Industries (ANI) to expand its operations. ANI is a raw cashew nut processor which collects nuts from farmer cooperatives and processes them into cashew kernels for export. The company will enter into a purchasing agreement with the country’s second-largest cooperatives union in the cashew sector Fédération Nationale des Producteurs d’Anacarde du Bénin, which is composed of 40,000 smallholder farmers. ANI is also getting BIO certification and aims to be certified by the end of 2023. This will enable it to benefit from certification premiums when selling organic kernels.
Also in Benin, ABC Fund has invested EUR 800,000 in one of the country’s largest pineapple juice processors Promo Fruits, a company that buys fresh fruit from cooperatives which it then processes into juices and nectars free of preservatives and additives. The funds will go towards working capital, materials to manufacture juice cans and to buy equipment to create polytunnels used by smallholder farmers.
In Mali, Group Diakhate will receive a EUR 450,000 loan to buy feed raw materials such as cotton seeds, soybean meal and maize. It will also use the funds to buy equipment such as two processing machines and a solar electricity-generating system.
Matale Hill Brothers (MHB), a Ugandan secondary coffee processor has received a USD 257,200 (EUR 254,00) credit facility to meet its working capital needs (buy coffee from smallholder farmers). MHB buys coffee from smallholder farmers and traders across Uganda. It then processes the coffee and markets it to various off-takers and sells graded and ungraded coffee to multinationals and local companies.
In Nigeria microfinance institution Grace and Mercy has received a USD 2mn (EUR 1.91mn) credit facility to develop a formal agricultural financial product that will enable the company to provide over 4,000 agricultural loans per funding cycle.