IFC invests $25 million in Promasidor Nigeria

23 Sep 2016
Financial Nigeria


The financing will support purchases of new machinery that will enable PNL to increase efficiency, expand production and develop new products.

Eme Essien Lore, IFC’s Country Manager for Nigeria

The International Finance Corporation has approved a $25 million loan to Promasidor Nigeria Limited (PNL), a leading diary and seasoning products company, according to a statement released on Thursday.

The IFC’s financing will support purchases of new machinery that will enable PNL to increase efficiency, expand production and develop new products, leading to greater availability of nutritious food products in Nigeria at competitive prices.

“Agribusiness is Nigeria’s largest employer. Increasing investment in food-processing companies like PNL will help diversify Nigeria’s economy and improve nutrition by expanding the supply of affordable food,” said Mary-Jean Moyo, IFC’s Head of Manufacturing, Agribusiness and Services for sub-Saharan Africa.

Founded in 1993, PNL owns several well-known brands in Nigeria, including Cowbell Milk, Loya Milk, Onga food seasoning and Top tea. The company is a subsidiary of Promasidor Holdings Limited, a leading Pan-African consumer goods company operating in 25 countries across the continent.

The parent company was founded in 1979 in the Democratic Republic of Congo by Robert Rose, who pioneered formulations and packaging of dairy products in a manner that extends their shelf life and affordability for low and middle-income consumers.

“This is a very competitive market for food products. We expect that this investment will help us optimize production costs, enabling us to reach and nourish more consumers with our affordable range of quality products,” said PNL CEO Olivier Thiry. “We will also target our portfolio extension by gradual integration of more locally sourced raw materials from producers in Nigeria and widening our network of distributors.”

The IFC is a leading investor in Africa’s agribusiness sector as it seeks to enhance productivity with the goals of greater food security, higher rural incomes, and improving environmental and social sustainability. The Washington D.C.-based multilateral institution estimates that by 2030, Africa’s agriculture and agribusiness market is expected to triple in value to reach $1 trillion if $10 billion is invested annually to raise farm output.

In the fiscal year ended in June 2016, the IFC said its overall, long-term investments in sub-Saharan Africa reached $3.7 billion, including over $1.8 billion mobilized from other investors. The IFC said its clients provided 240,000 jobs, supported nearly 1.2 million farmers, and treated nearly 960,000 patients.

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