|
May 31, 2019
–IFC, a member of the World Bank Group, is partnering with Phoenix Commodities Pvt. Ltd. (Phoenix) to invest into Kazakhstan’s horticulture and help the country modernize its fruit supply chain. The partnership will also expand Phoenix’s global supply chain business and help to source agri-commodities from Eastern Europe and Asia for distribution in Sub-Saharan Africa — improving food security and supporting agriculture in emerging markets and some of the world’s poorest countries.
The new global partnership includes a $20 million risk sharing agreement through a guarantee mechanism in favor of Phoenix Global DMCC, a Dubai-based trading subsidiary of Phoenix, and a $10 million investment in Phoenix Fruits LLP, a Kazakhstan-based subsidiary of Phoenix.
The risk-sharing agreement was made under IFC’s Global Warehouse Finance Program (GWFP). It will support Phoenix’s fast-growing core supply chain business and help the company transport, store, and distribute agri-commodities in Benin, Burkina Faso, Cameroon, Ghana, Guinea, Kenya, Madagascar, Senegal, South Africa, and Togo — most of which are members of the International Development Association.
In Kazakhstan, IFC will finance an up to 1,000-hectare greenfield fruit orchard with the full cycle of growing, calibrating, storing, and freezing of various fruit types (such as apples, pears and cherries). With a land area equal to Western Europe, Kazakhstan has a promising agribusiness sector. Nearly three-quarters of its land is suitable for farming, a sector with the potential to spur social and economic development in the country. The investment will support Kazakhstan’s horticulture sector and create more than 2,300 full-time and seasonal jobs, mostly for women.
“By launching two new projects across Phoenix’s value chain, IFC is establishing a long-term relationship that will help promote trade and economic development in Sub-Saharan Africa, Eastern Europe, and Asia as well as strengthen the competitiveness of Kazakhstan’s horticulture, while also creating employment in the country,” said Wiebke Schloemer, IFC Director for Europe and Central Asia.
“Working with IFC, we intend to use our expertise in food value chain to maintain economic activity and ensure food security in Sub-Saharan Africa. With a new project in Kazakhstan, we expect to bring the best agricultural practices and expertise to the country, while contributing and diversifying the economic base through a strong, inclusive and sustainable approach,” said Gaurav Dhawan, Executive Chairman of Phoenix.
Since 1997, IFC has invested $1.25 billion in Kazakhstan, including nearly $300 million mobilized from our partners, to support over 60 private sector sustainable projects across various industries, including agribusiness, financial services, manufacturing, and oil and gas.
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 fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
The IFC Global Warehouse Finance Program is a joint investment and advisory program implemented to support agricultural-sector players, including producers, traders and agribusiness commodity processors in emerging markets. Under this program, IFC provides short-term loans or risk participation solutions to commercial banks for their loans to the agriculture sector against warehouse receipt or other inventory financing schemes as collateral. Since inception, the GWFP program has supported 36 projects and $7 billion worth of agriculture trade flows in 66 emerging countries.
About Phoenix Commodities
Phoenix, established in 2001, is a global agri-food, farming, distribution and resources company engaged in the production, procurement, processing, merchanting and distribution through its integrated supply chain. With physical presence in over 24 countries across Asia, Africa, Europe, Australia and the Commonwealth of Independent States, the company employs over 2,500 people. For more information, visit
www.phoenixgroup.net
; LinkedIn
www.linkedin.com/company/phoenixgroupco
Stay Connected
|
