News in brief:
– UK development finance institution invests $15 million to support the expansion of processing and warehouse infrastructure in Nigeria.Â
– It aims to increase agricultural exports by strengthening partnerships with local farmers and processing centers, creating up to 2,800 jobs and providing market access to over 60,000 smallholder farmers.
The British International Investment (BII), has announced a $15 million equity investment in Valency International, a Singapore-headquartered agricultural commodities trading house. BII is the UK government’s development finance institution and impact investor.
The investment, according to the details, seeks to support the expansion of processing and warehouse infrastructure in Nigeria with the the aim of improving food security, creating jobs, and increasing agricultural exports.
Valency facilities, funded by BII, will strengthen partnerships with local farmers and processing centers to help them maximise agricultural output and provide a more stable supply of premium-quality products for export.
Also, the initiative is expected to create up to 2,800 jobs for low-income workers across the country and indirectly provide market access to over 60,000 smallholder farmers.
Despite agriculture being a key contributor to Nigeria’s economy, food processing and manufacturing remain underdeveloped. Recall a recent report that blames these factors for almost 60% loss of agricultural produce.
BII’s investment seeks to address this gap by supporting the development of best practices in business integrity and environmental and social management systems.
Furthermore, the UK’s sustainable agriculture work in Nigeria hopes to help mitigate greenhouse gas emissions and adapt to climate change. It targets strengthening livelihoods, improving nutrition, and supporting food security and poverty alleviation.
Jonny Baxter, UK Deputy High Commissioner expressed excitement over the new investment and stated that his government looked forward to continuing to support Nigeria’s agriculture sector and the opportunities it provides for its economic growth.
Additionally, Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, spoke about the importance of the initiative. He said that it provides a strategic opportunity to catalyse growth in Nigeria’s food and agricultural sector through food export and advised that it should be seized.
Sumit Jain, Chief Executive Officer of Valency International, added that they had been careful and deliberate in their choice of partners for the next phase of our growth. A variety of investor groups had approached them but they chose to partner with BII because of its engagements in the regions where they have committed to invest substantially over the medium term.
