IFC and GAFSP Partner with Nedbank to Support Rice Imports to Liberia
IFC and the private sector window of the Global Agriculture and Food Security Program today announced support for Nedbank’s $ a $50 million facility to help commodity traders in Sub-Saharan Africa import agricultural commodities and export cash crops.
Signed under IFC’s Global Warehouse Finance Program, the facility will first finance rice importers in Liberia, a country heavily impacted by Ebola. Food security is critical in Liberia, where the economy is suffering due to border closure and restrictions on air travel. Through the facility, IFC and GAFSP will provide risk mitigation to Nedbank to support lending to the agriculture sector against warehoused commodities. Nedbank will lend to rice traders in Liberia to ensure that food is delivered to the country without delay.
“Working with IFC, we intend to use our expertise in commodity finance to keep trade active in those countries in Sub-Saharan Africa. Nedbank is willing to expand its operational reach to commodity traders in this region and is grateful to launch the new collaboration with IFC today,” said Sekete Mokgehle, Head of Global Commodity Finance of Nedbank Capital.
German Vegarra, IFC’s Regional Head of Manufacturing, Agribusiness and Services for Sub-Saharan Africa said, “The private sector has a crucial role to play in containing the economic effects of Ebola. By partnering with Nedbank, IFC and GAFSP will support commodity trade in Liberia, to maintain economic activity and ensure food security in the country.”
Donor partners to the Private Sector Window of GAFSP are the governments of Canada, Japan, the Netherlands, the United Kingdom and the United States. This funding makes it possible for IFC to invest in riskier projects with strong potential to promote food security and reduce poverty.
Marcel Beukeboom, Head of Food and Nutrition Security at the Ministry of Foreign Affairs of the Netherlands said, “IFC is financing this facility with support from the United States, Canada, and the Netherlands under GAFSP. Food security is depending on trade and investment. This support through IFC and GAFSP to rice importers in Liberia is securing food supply and economic activity for the longer run. It is very important to invest in this region at this very moment, hopefully more investments will follow.”
The World Bank Group is mobilizing $1 billion in financing for the three countries hardest hit by the Ebola crisis. This includes $518 million for the emergency response. The funding is helping Guinea, Liberia and Sierra Leone provide treatment and care, contain and prevent the spread of infections, help communities cope with the economic impact of the crisis, and improve public health systems. IFC aims to deliver at least $450 million in commercial financing that will enable trade, investment and employment in Guinea, Liberia and Sierra Leone.