IFC supports Johnvents Industries with $23m facility
The International Finance Corporation has offered a $23.3m financing package to agribusiness group, Johnvents Industries Limited, to expand the company’s cocoa processing operations and increase its export capacity to global markets.
According to a statement on Thursday, the IFC’s $23.3m facility includes an $8.5m loan from the IFC’s account, a $6.3m loan equivalent in Nigerian Naira with support from the local currency facility of the International Development Association’s Private Sector Window, and a $8.5m loan by the Private Sector Window of the Global Agriculture and Food Security Programme.
It was also revealed that the facility would enable Johnvents to expand its cocoa processing plant in Ondo State and double its production capacity to up to 120 metric tonnes of cocoa per day, helping to provide steady incomes for farmers in its supply chain.
The Group Managing Director, Johnvents Industries Limited, John Alamu, said, “IFC’s partnership with Johnvents marks another giant step in our commitment to transform Nigeria’s cocoa sector and agriculture industry. This support will help strengthen our operatio ns and energise our commitment to sustainability, traceability, and inclusive growth.
“By doubling our production capacity and increasing export potential, we aim to deliver more value to all stakeholders and significantly contribute to the nation’s economic diversification and development. We are immensely grateful for IFC’s support.”
As part of the deal, IFC will also provide advisory services to Johnvents to help it increase women’s participation in its workforce and across its value chain.
IFC will also help strengthen the company’s ongoing sustainability and traceability programme and advise Johnvents on enhancing efficient digitisation and sourcing of its current processing capacity of cocoa-based products, including butter, cake, and powder for chocolates, confectionaries, and health products.
“Agribusiness plays a critical role in fostering value addition and diversifying Nigeria’s economy. IFC’s financing and advisory support for Johnvents will help strengthen the company’s operations, develop Nigeria’s cocoa sector, and sustain and create thousands of jobs,” said IFC Managing Director, Makhtar Diop.
To support Johnvents’ sustainability efforts, IFC’s financing package will enable the company to replace inefficient diesel generators and wood-based boilers with a new efficient power generation system that uses natural gas to produce electricity and thermal energy, resulting in fewer emissions.
According to the firm, the system’s installation is designed to facilitate the future integration of renewable energy sources, such as solar, contributing to and directly aligned with Nigeria’s decarbonisation strategy in agriculture value chains.
Nigeria is one of the largest producers and exporters of cocoa in Africa.
Johnvent Industries stated with IFC’s support, it could meet higher demand and access new markets while boosting Nigeria’s competitiveness in the global cocoa market, and increasing the country’s export earnings.
Johnvents has a target to achieve 100 per cent traceable cocoa, with at least 90 per cent certified, by 2027, and to improve traceability protocols for Nigeria’s cocoa produce for international markets.
