IFC and Johnvents partner to boost Nigeria’s cocoa production and export capacity
To help strengthen Nigeria's agricultural sector and support the livelihoods of thousands of farmers, IFC and Johnvents Industries Limited have announced a partnership to expand the company's cocoa processing operations and increase its export capacity to global markets.
IFC's $23.3 million financing package, which includes local currency funding in Nigerian Naira, will allow Johnvents to expand its cocoa processing plant in Ondo State, Nigeria, and double its production capacity to up to 120 metric tons of cocoa per day, helping to provide steady incomes for farmers in its supply chain.
The financing package includes an $8.5 million loan from IFC's own account, a $6.3 million loan equivalent in Nigerian Naira with support from the local currency facility of the International Development Association's Private Sector Window, and a $8.5 million loan by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).
As part of the partnership, IFC will also provide advisory services to Johnvents to help the company increase women's participation in its workforce and across its value chain. IFC will also help strengthen the company's ongoing sustainability and traceability program and advise Johnvents on enhancing efficient digitization and sourcing of its current processing capacity of cocoa-based products, including butter, cake, and powder for chocolates, confectionaries, and health products.
To support Johnvents' sustainability efforts, IFC's financing package will enable the company to replace inefficient diesel generators and wood-based boilers with a new efficient power generation system that uses natural gas to produce electricity and thermal energy, resulting in fewer emissions.
The system's installation is designed to facilitate the future integration of renewable energy sources, such as solar, contributing to and directly aligned with Nigeria's decarbonization strategy in agriculture value chains.
"IFC's partnership with Johnvents marks another giant step in our commitment to transform Nigeria's cocoa sector and agriculture industry. This support will help strengthen our operations and energize our commitment to sustainability, traceability, and inclusive growth. By doubling our production capacity and increasing export potential, we aim to deliver more value to all stakeholders and significantly contribute to the nation's economic diversification and development. We are immensely grateful for IFC's support," said John Alamu, Group Managing Director, Johnvents Industries Limited.
"Agribusiness plays a critical role in fostering value addition and diversifying Nigeria's economy. IFC's financing and advisory support for Johnvents will help strengthen the company's operations, develop Nigeria's cocoa sector, and sustain and create thousands of jobs," said Makhtar Diop, IFC Managing Director.
Cocoa plays a crucial role in Nigeria's agribusiness sector and the country is one of Africa's largest producers and exporters. By supporting Johnvents, IFC is contributing to allowing the company to meet higher demand and access new markets, while boosting Nigeria's competitiveness in the global cocoa market, and increasing the country's export earnings.
Johnvents has a target to achieve 100 percent traceable cocoa, with at least 90 percent certified, by 2027, and to improve traceability protocols for Nigeria's cocoa produce for international markets.
IFC's financing and advisory support to Johnvents is part of its strategy to promote diversified, inclusive growth and job creation in Nigeria, and is part of its broader work in Africa to support sustainable agricultural practices, increase local capacity, and develop regional value chains and markets.
