Antananarivo, Madagascar, December 12, 2017
—IFC, a member if the World Bank Group, today announced an advisory services agreement to help agribusiness company BoViMa establish Madagascar’s first modern feedlot and abattoir.
The four-year advisory program aims to establish BoViMA as a world-class meat operator sourcing Zebu cattle and feed ingredients from local communities.
IFC will help BoViMa establish a Zebu cattle breeding program and a value chain to source feed ingredients such as maize, cassava, grass, and cane tops) from local farmers in southern Madagascar, boosting their incomes and connecting them to the world meat markets.
IFC also expects to follow the advisory agreement with an investment in BoViMa.
“Our partnership with IFC will completely change and improve the economic and social landscape of the Anosy and Androy regions,” said Danil Ismael, the CEO of BoViMa. “We will provide financial and technical support, and work with livestock farmers, veterinarians and others to help modernize the Zebu value chain. Most of all, this project will establish an integrated and participative approach to development in Southern Madagascar.”
Oumar Seydi, IFC Director for sub Saharan Africa, said, “This project demonstrates IFC’s unique role in fragile states like Madagascar, where farming and agriculture provide livelihoods for most people. We expect BoViMa to set the standard for a modernization of the sector while contributing and diversifying the economic base through a strong, inclusive and sustainable approach.”
BoViMa expects to export high-quality meat primarily to the Middle East, creating a competitive industry for Madagascar. It will provide support to local farmers, improve farming practices and Zebu genetics, and diversify farmer incomes. BoViMa will directly employ 200 people Fort Dauphin, a remote part of the country.
IFC will also support local veterinary services by funding the Pasteur Institute for phytosanitary support, while GIZ is working with local communities on the goat and ruminants value chains. Madagascar Bank BNI is also providing financial support to BoViMa.
Madagascar has strong fundamentals for cattle and goat production, including absence of major diseases, good climate and cost competitiveness. Private sector investments together with government support in veterinary services and infrastructure could bring the exports of Zebu meat to $500 million a year.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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