AgroServ raises €12.2 million from I&P, Oiko Credit and other partnersSubmitted by Admin on Thu, 12/15/2022 - 12:10
Oikocredit and Investisseurs & Partenaires (I&P), with the support of BIO and EDFI AgriFI, are investing €12.2 million in AgroServ, a Burkinabe maize processing company created in 2013 by Siaka SANON, to support its development projects.
Oikocredit and I&P, through the IPAE 2 fund, are jointly investing €6.2 million in Agroserv's capital, while financing partners BIO and EDFI AgriFi will lend the company an additional €6 million.
Read the interview of the promoter, Mr. Siaka Sanon (07/2022)
This latest funding will allow Agroserv Industrie to build a new production unit in the city of Bobo-Dioulasso, the economic capital of Burkina Faso and second most populated city after Ouagadougou. This facility will increase Agroserv's processing capacity to 160 tons per day. Agroserv also plans to diversify into higher value-added products, including high-energy flour, pre-cooked cornmeal and soy protein, which will be sold to households, the government for school canteens and the World Food Program.
Smallholder farmers supplying Agroserv are also expected to increase to 12,000 (from 6,000 today) through closer collaboration with local cooperatives, increased direct sourcing, and higher yields, thanks to technical assistance provided by I&P.
From Development to Expansion range
Prior to this new round of financing, Agroserv Industrie had been financed and supported for five years by Sinergi Burkina, a pioneering impact investment fund in Burkina Faso and a member of the IPDEV 2 fund family of Investisseurs & Partenaires.
This handover between Sinergi Burkina and the I&P Afrique Entrepreneurs 2 (IPAE 2) fund demonstrates the capacity of African companies to scale up and is already a great example of entrepreneurial success.
Read the article on the exit of Sinergi Burkina from the capital of Agroserv
Social impact investor and worldwide cooperative Oikocredit has 47 years of experience funding organisations active in financial inclusion, agriculture and renewable energy.
Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.
Oikocredit finances over 500 partners, with total outstanding capital of € 1,049.3 million (at September 2022).
For more information: www.oikocredit.coop
Investisseurs & Partenaires (I&P) is a pioneering impact investment group entirely dedicated to financing and supporting small and medium-sized enterprises (SMEs) and start-ups in Sub-Saharan Africa.
For more information: https://www.ietp.com/fr
BIO is a Development Finance Institution that supports private sector growth in developing countries. BIO provides long-term financing to enterprises, financial institutions, and private infrastructure projects, as well as grants for feasibility studies and technical assistance programmes. BIO operates as an additional partner to financial institutions and aims to strike a balance between return on investment and development impact. BIO is a member of EDFI (European Development Finance Institutions) and has more than 1 billion Euros of assets under management.
For more information: www.bio-invest.be
About EDFI AgriFI
EDFI AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness.
AgriFI is managed by EDFI Management Company on behalf of the 15 European Development Finance Institutions (DFI).
For more information: www.agrifi.eu