British International Investment to Inject $15M Equity into Valency International for Agricultural Infrastructure Expansion in Nigeria

0 84

The British International Investment (BII), the UK’s development finance institution, is set to invest $15 million in equity into Valency International, a Singapore-headquartered agricultural commodities trading house. The investment aims to facilitate the expansion of processing and warehouse infrastructure in Nigeria, creating jobs for low-income workers, providing market access to smallholder farmers, and boosting agricultural output and exports.

Key Points:

  • BII plans to invest $15 million in equity into Valency International for the expansion of processing and warehouse infrastructure in Nigeria.
  • The investment is subject to regulatory approval and is expected to close in early 2024.
  • BII retains the option to invest an additional $35 million in equity into Valency within two years of completing the initial investment.
  • The funding is expected to create up to 2,800 jobs for low-income workers and provide market access to approximately 60,000 smallholder farmers, contributing to increased agricultural output.
  • Agriculture accounts for a significant portion of Nigeria’s economy, yet food processing and manufacturing remain underdeveloped in the local agricultural sector.
  • BII aims to support Valency in developing best practices in business integrity and Environmental and Social Management Systems, focusing on job quality, gender inclusion, and value creation.
  • UK Deputy High Commissioner Jonny Baxter highlights the investment’s role in enhancing Nigeria’s food processing capabilities, creating jobs, and supporting economic growth.
  • BII’s Head of Office and Coverage Director for Nigeria, Benson Adenuga, emphasizes the commitment to food security, smallholder farmers, and economic development.
  • Valency International CEO Sumit Jain expresses the deliberate choice of BII as a partner for growth, citing BII’s engagement in the regions aligning with Valency’s growth plans.

Conclusion: The collaboration between BII and Valency International signifies a strategic effort to enhance Nigeria’s food and agricultural sector. The investment is poised to address challenges in the local agricultural supply chain, create employment opportunities, and contribute to the country’s economic development, with a focus on sustainable and impactful practices.

Punch

Leave A Reply