Posted on October, 11, 2023 at 08:49 am
Rabat - In an effort to bolster agricultural growth and enhance food security in Africa, the International Finance Corporation (IFC) and Moroccan fertilizer giant, OCP Group, unveiled an ambitious agri-finance platform. The initiative aims to mobilize a substantial $800 million in blended capital by 2030.
The platform aims to build and support sustainable food production and distribution systems across the African continent, said OCP in a press release.
By providing access to finance and comprehensive skills training, the initiative plans to strengthen 30 agricultural value chains, via 60 agri-finance operations. These operations will encompass various crop types and address prevalent challenges hindering the sector’s growth and resilience.
The statement underlined that agriculture holds immense economic significance for Africa, contributing approximately 20% to the continent’s GDP and employing over 60% of its population.
Despite the continent’s agricultural potential, Africa currently relies heavily on food imports. This leaves the continent vulnerable to external disruptions, such as those posed by the COVID-19 pandemic and the war in Ukraine.
The targeted investment strategy of the platform aims to address these challenges, and foster sustainable growth within the sector, ultimately enhancing food security across Africa.
Mostafa Terrab, Chairman and CEO of OCP Group said that the partnership with IFC will help “unlock the full potential of Africa to feed not only itself but the world.”
“Today we take a major step towards a just African agricultural transformation by mobilizing substantial new financing for African farmers and for the value chains that support them,” Terrab added.
Meanwhile, Managing Director of IFC Makhtar Diop emphasized the critical role of agriculture in Africa and expressed enthusiasm about scaling up the partnership with OCP to attract investment and improve food production on the continent.
Read also: OCP Africa, Microsoft Join Forces to Strengthen Food Security in Africa
Diop pledged that “both IFC and OCP Group will commit resources to grow the platform and we are keen to attract like-minded partners and potential investors to join us in this important and timely project.”
The platform intends to attract new investors and foster a “pipeline of interventions,” each meticulously monitored for its impact on social, economic, and environmental measures, added the statement.
In addition, the platform will conduct comprehensive studies of targeted value chains to identify challenges and design effective solutions. The goal is to promote the emergence of African champions and facilitate the sharing of best practices to drive success across the continent.
Already in motion, the platform has partnered with Bank of Africa to enhance access to fertilizers and other inputs for African farmers and agri-processors. Specific projects focusing on cashew and rice value chains in Côte d’Ivoire have been designed, and similar ventures are in the pipeline for Cameroon, Gabon, and other African nations.
The platform will leverage the expertise of INNOVX, a multi-sectorial venture platform initiated by Mohammed VI Polytechnic University (UM6P), dedicated to building innovative and sustainable businesses and ecosystems with a robust local impact.
It also draws upon the extensive knowledge of OCP Africa, OCP Group’s subsidiary dedicated to the African continent.
In addition to the agri-finances platform they have unveiled, OCP Group and IFC sealed a green loan agreement today to advance sustainable agriculture and climate action by enhancing the production of low-carbon fertilizer using solar energy.
OCP Group has shown a deep commitment to strengthening food security in Africa. The company has launched various initiatives and projects to support farmers and enhance agricultural productivity across the continent.
One of the key initiatives involves generous donations of fertilizers to numerous African countries.
Source: Morocco News