In a strategic move to boost Africa’s agricultural sector, the International Finance Corporation (IFC) and South Africa’s Absa Group have partnered to provide a $50 million trade finance facility to Singapore-based Valency International. This initiative will fund the procurement of key agricultural commodities such as cashew nuts, sesame seeds, and ginger from smallholder farmers across West and East Africa.
Founded in 2007, Valency International is a Singapore headquartered food ingredient supplier with a highly differentiated product portfolio across 21 product categories. Valency has strategic equity investment from British Internationally Investments (BII), the development finance arm of the Government of UK.
Valency has established a sizeable global presence, with offices and operations in 40 countries and a passionate team of more than 3,000 people. Valency operates across agricultural commodities, processed Agri products, Agri Inputs, Industrial Chemicals and FMCG food products.
Valency, which works with 150,000 smallholder farmers in countries like Nigeria, Ghana, and Tanzania, will use the facility to purchase and export these goods. This financial support will strengthen the agricultural value chain, helping farmers improve market access and financial stability. Smallholder farmers, who manage around 80% of Africa’s farmland, often lack access to capital, limiting their ability to grow. The trade finance facility seeks to address this challenge by injecting much-needed working capital into the sector.
Absa and IFC have each committed $25 million to the project. This forms part of IFC’s $1 billion Africa Trade and Supply Chain Recovery Initiative, designed to support agricultural growth and sustainable development across the continent. The investment will also enable Valency to provide financing to cooperatives and local buying agents, which will benefit smallholder farmers.
For IFC, which is one of Africa’s leading agribusiness investors, the collaboration aims to accelerate job creation and economic growth through agriculture. “We see a tremendous opportunity to support economic growth and job creation in this critical industry,” said Sérgio Pimenta, IFC’s Vice President for Africa. This sentiment was echoed by Absa’s Tshimbi Ntuli, who underscored the importance of partnerships in transforming Africa’s agricultural landscape.
Sumit Jain, Valency’s CEO, expressed enthusiasm for the collaboration, highlighting the company’s commitment to further integrating African farmers into global markets. This trade facility stands to empower smallholder farmers, creating a ripple effect of economic growth and improved livelihoods in the region. By providing direct financial support, it helps unlock the full potential of Africa’s agricultural sector, bringing thousands of farmers closer to global markets.
