Wednesday, June 23, 2021

    EU provides €45m support for agri-businesses in Nigeria, other African countries

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    Naija247news Media, New York
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    The European Union (EU) has provided 45 million euros to support smallholder agri-businesses in rural area in Nigeria and other African countries.

    The EU disclosed this in a press statement on Monday, the News Agency of Nigeria reports.

    It quoted the EU Commissioner for International Cooperation and Development, Neven Mimica, as saying this during the inauguration of the support fund in Rome.

    Mimica said the launch of the support known as the new Agri-Business Capital (ABC) Fund, would help deliver on the Africa-Europe Alliance for Sustainable Investments and Jobs.

    He said at the launch, organised by the International Fund for Agricultural Development (IFAD) that EU was committed to boosting agri-business investments in Africa.

    The commissioner also expressed EU’s commitment to strengthening livelihoods and creating sustainable jobs in rural areas, especially among traditionally under-served communities.

    “The ABC Fund will help us achieve this – which is why it has our full backing.

    “The EU has made 45 million euros available to the fund.

    “On top of this, the Luxembourg Government and the Africa Green Revolution Alliance, an international NGO, are contributing five million euros and five million dollars respectively.

    “The new ABC Fund, established by IFAD, is primarily geared towards individual smallholders and farmers’ organisations, with loan sizes from 25,000 dollars to one million dollars (about €22,000 – €885,000), thus improving their access to finance.

    “This “missing middle” has the potential to be profitable and to impact development, but has lacked sufficient funding until now,” the commissioner said.

    The official said that it was expected to mobilise more than 200 million euros in investments and could benefit up to 700,000 households in rural areas.

    According to the commissioner, the ABC Fund is a major blending operation for agricultural investments in developing countries.

    “It covers direct investments such as small-scale loans for small and medium-sized enterprises, farmers’ organisations and ‘agripreneurs’, along with indirect investment in local financial institutions for subsequent on-lending.

    “It builds on existing IFAD development activities to screen opportunities and reduce the risk attached to subsequent investments.

    “ It is expected to attract significant additional funding from other sources – private and impact investors alike,” the commissioner said.

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