NIGERIA – British International Investment (BII), a UK development finance institution and impact investor, has committed a US$15 million equity investment in Valency International.
The investment aims to support the expansion of processing and warehousing infrastructure in Nigeria, contributing to the country’s food processing capabilities and creating employment opportunities.
In addition, Valency International, a Singapore-headquartered agricultural commodities trading house, is set to utilize the funds to establish new processing and warehousing facilities.
The investment is intended to strengthen partnerships with local farmers and processing centers, maximizing output and ensuring a more stable supply of premium-quality agricultural products.
The UK Deputy High Commissioner, Jonny Baxter, expressed excitement about the new investment, emphasizing its potential to enhance Nigeria’s food processing capabilities and generate jobs across the nation.
The investment aligns with the UK’s sustainable agriculture initiatives in Nigeria, contributing to greenhouse gas emission mitigation, climate adaptation, and overall economic growth.
The new Valency facilities funded by BII are expected to reach an additional 60,000 farmers and create up to 2,800 jobs, particularly benefiting low-income communities.
BII has the option to invest an additional US$35 million in equity into Valency within two years of the initial investment, showcasing a long-term commitment to the project.
As the first institutional investor in Valency, BII will provide support in developing best practices in business integrity and Environmental and Social Management Systems (ESMS).
The collaboration aims to improve job quality, promote gender inclusion, and enhance overall value creation.
Agriculture plays a pivotal role in Nigeria’s economy, contributing a quarter of the total gross domestic product (GDP) and employing over one-third of the population.
Despite its significance, the local agricultural sector faces challenges in food processing and manufacturing. The investment from BII is poised to address this gap and catalyze growth in the food and agricultural sector.
Benson Adenuga, Head of Office/Coverage Director, Nigeria for BII, stressed the strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector, leveraging its immense food export potential.
“The investment signifies a deepened commitment to food security, smallholder farmers, job creation, industrialization, and regional and international trade,” he said.
Sumit Jain, CEO of Valency International, expressed the careful selection of partners for the next phase of growth, highlighting BII’s engagement in the regions where substantial investments are planned.
He assured that the partnership is anticipated to drive impactful development in Nigeria’s growing food and agriculture sector.
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