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Antananarivo, Madagascar, March 21 2015
— IFC, a member of the World Bank Group, and the Global Agriculture and Food Security Program announced an investment of $3 million in
SMTP Group to expand the company’s poultry operations in Madagascar, creating jobs, increasing food supply and supporting economic recovery in the country. The financing will be issued in Malagasy Ariary, helping SMTP limit
foreign currency risk.
Three of the SMTP Group’s subsidiaries – Agrifarm, Agrival and Mabel – will benefit from the investment. The companies will use the funds to double the production of day-old chicks, increase supply of animal feed, and will set up a modern chicken slaughterhouse, which will supply over 15,000 tons of chicken meat per year.
SMTP’s expansion will also help farmers in Madagascar, who supply maize for animal feed production. As the Group’s poultry operations grow, the number of farmers supplying maize and other inputs is expected to increase from 1,200 to 4,000. SMTP will advise farmers on how to increase their productivity and revenues, providing them with hands-on assistance, fertilizers and agricultural inputs.
Poultry production is a way of life for many rural families in Madagascar. Nearly all poultry is grown in non-industrial, backyard operations, with little attention to health and safety standards. As a result, Madagascar’s poultry sector is not competitive globally, given its lack of industrialization and scale. IFC will advise SMTP on design of the new poultry farm and slaughterhouse, ensuring that the facilities meet the international health and sanitary standards required for meat exports.
Danil Ismael, the Chairman of SMTP said, “The investment will enable SMTP to expand its poultry operations despite the challenging economic environment in Madagascar. We are committed to work closely with IFC to adopt international best practices, so we can deliver high-quality food products to Malagasy consumers”.
Oumar Seydi, IFC Director for Eastern and Southern Africa said, “IFC and the Global Agriculture and Food Security program’s investment in SMTP supports the growth of a local company which will increase food supply, create jobs, support thousands of farmers in Madagascar. By introducing international best practices, SMTP will help make Madagascar’s agribusiness sector globally competitive, which is vital for the country’s economic recovery.”
Supporting agribusiness along the value chain is a cornerstone of IFC’s strategy in Africa. Agriculture employs over half of Africa’s labor force, and has a strong impact on micro, small and medium-sized enterprises.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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About SMTP
SMTP group is a conglomerate in Madagascar, with activities in agribusiness (including industrial bakery), plastics, packaging, woven polypropylene, construction and civil works, automobile dealership, real estate (residential and commercial).
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