The International Finance Corporation (IFC) has announced a significant investment of $23.3 million to enhance the cocoa processing capacity of Nigerian food processor Johnvents Industries Limited.
This initiative aims to bolster Nigeria’s cocoa production and increase its competitiveness in the global market.
The investment will support the expansion of Johnvents’ cocoa processing facility in Ondo State, enabling it to process 120 metric tons of cocoa daily.
The company has set a goal to achieve 100% traceable cocoa in the international market by 2027.
However, the funding package includes an $8.5 million loan from the IFC, $6.3 million from the International Development Association (IDA), and $8.5 million from the Global Agriculture and Food Security Programme (GAFSP).
These developmental financial institutions operate under the World Bank, with the IFC taking the lead role in overseeing the investment.
IFC’s Managing Director,Makhtar Diop highlighted the significance of the investment, stating, “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.”
Johnvents Industries expressed optimism about the partnership.
The company’s General Manager, John Alamu remarked, “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 operations and energize our commitment to sustainability, traceability, and inclusive growth.”
The investment is expected to help Johnvents meet the current high demand for it and access new markets.
This will enhance Nigeria’s competitiveness in the international market, boost export earnings, and create employment opportunities.
This development comes amid extreme price volatility in the sector caused by climate change, disease, and high inflation.
Cocoa prices reached an all-time high of $12,261 per metric ton in mid-April, as major producers like Ghana and Ivory Coast struggled to meet its futures.
Chocolatiers reacted by offering premium prices for cocoa beans.
Furthermore, the IFC’s announcement follows the recent inauguration of a $1.6 million cocoa processing facility in Cameroon by French entrepreneur Olivier Bordais.
These investments signal a broader trend of increasing interest and investment in West Africa’s processing capabilities in the produce.
AgroNigeria
