EDFI AgriFI and BIO co-invest for a total of EUR 6 million in AgroServ Industrie to scale up local agriculture value chain in Burkina Faso
The co-investment between the Belgian Development Finance Institution (BIO) and EU-funded Agriculture Financing Initiative (EDFI AgriFI) falls under the Team Europe approach to offer coordinated support to partner countries and contribute to the stability of Burkina Faso by empowering its private sector in disruptive times.
[Brussels, 24 October 2022] AgroServ Industrie, a leading Burkinabe maize processor closed a EUR 6 million senior loan, over a period of 8 years, from EDFI AgriFI and BIO to further expand and diversify its processing capacity and increase the sourcing from local smallholders around its plant. The loan is part of a funding round including equity commitments from Investisseurs et Partenaires and Oikocredit.
Amid the challenging environment in which Agroserv Industrie operates (the insecurity resulting from the resurgence of Islamist terrorist attacks, political instability, and the world food crisis), supporting private sector companies that are active in the agri-food value chain is of critical importance. Considering that Burkina Faso’s economy is largely based on agriculture, investing in promising companies such as AgroServ Industrie is a top priority for impact investors such as BIO and EDFI AgriFI. It not only creates economic opportunities for agri-MSMEs, but it also benefits the smallholder farmers, adds value to the local value-chains, and increases the availability of basic nutritional products, thereby contributing to improve the food and nutrition security of the local population. With this investment, AgroServ Industrie aims to increase and diversify its maize-based product line (grits, semolina, flour and bran), by building an agri-food transformation complex in Bobo-Dioulasso which will generate some 37 permanent additional jobs) . The objective is twofold: to increase AgroServ Industrie’s primary processing capacity, and therefore its sourcing from local farmers, and to diversify its product range thanks to secondary processing lines.
“As global food security and political stability challenges mount, tapping the potential of ambitious companies such as AgroServ is seen as essential for EDFI AgriFI to make the region’s economy more resilient, achieving sustainable growth, and improving smallholders’ inclusiveness. In particular, we are very proud to contribute to AgroServ’s ambition to benefit more than 10,000 farmers by 2024,” explained Aude Sauvaget, AgriFI investment officer at EDFI Management Company.
“Considering our ambition to add more value to local production, we aim to build an ultramodern agri-food complex for corn processing. Agroserv Industrie is happy today to see its dream materialise and above all, honoured and reassured to see renowned investment funds such as BIO and EDFI AgriFI taking part in this project,” commented Siaka SANON CEO of AgroServ
“BIO is pleased to be able to contribute, alongside its partners, to the development of an agri-food transformation plant in south-western Burkina Faso, which will increase the company’s processing capacity, improving efficiency, and diversifying the company’s product range and customer base. It will also help strengthen a strategic link in the Burkinabe maize value chain. BIO is very proud to support these strong, ambitious, and resilient Burkinabe entrepreneurs who are dedicated to sustainable growth in this country,” commented Elsie Ndada, investment officer at BIO.
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). www.agrifi.eu
The mission of the Belgian Investment Company for Developing Countries (BIO)is to promote the establishment of a strong private sector in developing and emerging countries, to enable them to access growth and sustainable development, within the framework of the Sustainable Development Goals. BIO was created in 2001 with the Belgian Federal State as sole shareholder.Its ultimate goal is to help strengthen the private sector in developing countries. www.bio-invest.be
AGROSERV INDUSTRIE SA is a Burkinabè industrial company specialised in the transformation of corn into semolina and flour, inspired by African traditions and modern industrial techniques. The company provides the market with food products adapted to the consumption needs of populations on the national and sub-regional markets. It is also investing in the organisation of the maize sector with a view to improving and stabilizing the quality and quantity of its raw material, any choice which positively impacts the income of small producers.
- EDFI AgriFI : Mathilde Poncelet (firstname.lastname@example.org)
- BIO: Ben Jehaes (email@example.com)
- Agroserv Industrie : (firstname.lastname@example.org)