The British International Investment (BII), the United Kingdom’s development finance institution (DFI), has signed a deal to invest $15 million in Valency International, a Singapore-based agricultural commodities trading house to boost Nigeria’s food processing sector.
The investment also aims to expand Valency’s processing and warehouse infrastructure in Nigeria, subject to regulatory approval and expected completion in early 2024.
BII, in a statement on Monday, said the new investment will support the creation of up to 2,800 jobs for low-income workers across the country, provide market access “indirectly” to smallholder farmers and boost agricultural output and exports.
The UK firm also said Roman Frenkel, its head of food and agriculture, will join the board of Valency as part of the transaction. agreement.
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“In addition to its commitment of $15 million, BII has the option to invest a further $35 million in equity into Valency within two years of completion of its initial investment,” the statement reads.
“The new Valency facilities, funded by BII will strengthen partnerships with local farmers and processing centres to maximise their output and provide a more stable supply of premium-quality products. The projects are expected to reach at least an extra 60,000 farmers and create up to 2,800 jobs among low-income communities in Nigeria.
“BII, as the first institutional investor in Valency, will provide value-added support to the company in developing best practices in business integrity and environmental and social management system (ESMS). Both parties will work closely to improve job quality and gender inclusion and enhance value creation.”
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Speaking on the investment, Jonny Baxter, UK deputy high commissioner, said the UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate but strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation.
“I am excited to welcome this new UK investment to help enhance Nigeria’s food processing capabilities, which will create jobs across the nation,” Baxter said.
“We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”
On his part, Benson Adenuga, Nigeria’s head of office and coverage director at BII, said the partnership will go a long way to boost Nigeria’s food exports.
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“The strategic opportunity to catalyse growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential,” Adenuga said.
“We are proud to deepen our commitment to food security and smallholder farmers in Nigeria while creating jobs that enable industrialisation and facilitate regional and international trade.
“We are delighted to partner with Valency, and we look forward to the significant impact and economic development that our catalytic capital will support.”
Speaking also on the deal, Sumit Jain, chief executive officer (CEO) of Valency International, said the investment will go a long way to drive its impact agenda in Nigeria and grow the country’s food and agriculture sector.
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