To boost food security in West and Central Africa amid a growing global food crisis, IFC (International Finance Corporation), BIC-BRED (Suisse) SA and Agro Companies International SA today announced a partnership to help finance the import of grain into Côte d’Ivoire, Cameroon, Ghana and other African countries.
Under the partnership, IFC will invest $20 million – through a risk participation agreement – in a $60 million trade finance facility arranged by commodity trade finance bank BIC-BRED (Suisse) SA for Swiss commodity trading group Agro Companies International SA. The facility will help Agro Companies International SA purchase wheat, corn and animal feed from international suppliers and distribute these products to West and Central African buyers, mainly local milling companies.
Africa is highly dependent on imported wheat and other grains, with 44 percent of the continent’s wheat coming from Russia and Ukraine in 2020. Fallout from the war in Ukraine and associated wheat supply chain disruptions, have highlighted the urgent need for grain trade financing to ensure food security in Africa.
“Strengthening food security in Africa is urgent at this critical time when inflation and market turbulence are hampering trade and imports,” said Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group in Africa. “Supporting firms like Agro Companies International SA is part of IFC’s strategy to fill the trade finance gap and help limit disruptions in the food commodity supply chain.”
“In the current context of rising inflation, this financing support from IFC is instrumental to sustain the milling wheat and animal feed supply chains of our clients in West and Central Africa,” said Erwan Boubet, CEO of Agro Companies International SA.
“This partnership with IFC enables BIC-BRED (Suisse) SA to increase its existing trade finance facility granted to Agro Companies International SA at a time when the need for more financial support has become crucial for Africa.” said François Monnier, Deputy General Manager of BIC-BRED (Suisse) SA.
In the past two years, IFC has grown the size of its short-term trade facilities to the commodities sector in emerging markets by 50 percent thanks to mobilization and partnerships with commercial banks.
Responding to surging levels of food insecurity, on October 3, IFC launched a new $6 billion global food security platform to strengthen the private sector’s ability to respond to the crisis and help support food production.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About Agro Companies International SA
Agro Companies International SA is a family-owned group of trading & chartering companies covering full value chain of milling wheat and animal feed products from origin to destination. Our team of experts supports the biggest millers in West and Central Africa and, more recently, East Africa, along with leading players in the animal feed industry in Africa, Europe, and the Mediterranean. Our business purpose is to provide our clients with wheat of the highest quality, at a fair and competitive price, in a consistent, reliable and timely manner, so as many millers as possible are able to afford and grind quality grain to make quality flour with the view to providing end-consumers with nutritive and economical food and to contributing to a food-secure Africa.