ITFC issues grant to Senegal based ground nut oil processor to augment quality standards

SENEGAL – The Senegalese Groundnut Oil Processing Company, SONACOS has received a grant from the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group to boost its processing capabilities.

SONACOS is a public limited company that has operated in the groundnut sector in Senegal for over 40 years, with an annual processing capacity of 360,000 tons.

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It undertakes its operations through five factories in Lyndiane, Ziguinchor, Diourbel, Louga and Dakar and works hand in hand with producers of groundnut seeds and other aspects of the value chain.

“This will make an important contribution to the nation’s export capabilities as the firm seeks to enter new markets and improve the contribution that SONACOS makes to global value chains.”

CEO of ITFC – Eng. Hani Salem Sonbol

The Technical Assistance, according to ITFC will enable SONACOS acquire new laboratory analysis equipment that will the company’s groundnut oil always meet international quality and safety standards, and therefore be able to conquer new international markets.

The funding will also be used to train laboratory staff in the use and maintenance of the new equipment and carry out research into the fatty acid composition of edible vegetable oils.

“The Technical Assistance that ITFC has approved for SONACOS will help the company improve the quality and quantity of groundnut oil produced locally.

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“This will make an important contribution to the nation’s export capabilities as the firm seeks to enter new markets and improve the contribution that SONACOS makes to global value chains, “said CEO of ITFC, Eng. Hani Salem Sonbol.

ITFC has been actively supporting trade development in Senegal since its inception in 2008, with more than US$764 million of financing and trade facilitation programs in favour of the West African country and its critical sectors, including energy and agriculture.

Nut production decline by 3% in 2019/2020

According to the International nuts and dried foods statistical year book 2019/2020, global groundnut production reached over 41 million metric tons in the season under review which was 3% down from the previous season.

However, this was 7% above the prior 10-year average reflecting the total production growing trend observed over the last decade.

Senegal ranked among the top groundnut producing countries during the season, with China in the lead accounting for 38% of the world peanut crop, followed by India with 15%. The next 20% was produced by Nigeria (8%), the USA (6%), Senegal (3%) and Argentina (3%).

Other than being eaten raw or in roasted form, the nuts are also utilized for the extraction of oil, with the ground nut oil market size having a potential to grow by US$ 1.90 billion during 2020-2024, according to a report by technavio.

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