IFC and OCP Group Launch $800m Agri-Finance Platform to Build Sustainable Food Systems in Africa
The International Finance Corporation (IFC) and the giant Moroccan fertiliser group (OCP) have unveiled an ambitious agro-finance platform, which will aim to boost agricultural growth and improve food security in Africa. The initiative aims to mobilise a substantial $800 million worth of blended capital by 2030 to build and support sustainable food production and distribution systems across the African continent, according to a statement from OCP.
In this sense, IFC and OCP Group, the world’s largest phosphate-based fertilizer producer, today launched an agri-finance platform to mobilize $800 million of blended capital by 2030. The new platform will build and support sustainable food production and distribution systems in Africa, contributing to skills development, job creation, and food security.
Taking these factors into account, the financial initiative plans, through access to finance and comprehensive capacity building, to strengthen 30 agricultural value chains through 60 agricultural finance operations. These actions will cover various types of crops; as well as address the main issues hindering the growth and resilience of the sector.
The agri-finance platform also includes a specific investment strategy that aims to address these challenges and foster sustainable growth within the sector, improving food security across Africa.
In his statement to the press, Mostafa Terrab, president and CEO of OCP, said that "the partnership with IFC will help unlock Africa's full potential to feed not only itself, but the world", adding that "today we take a big step towards a just African agricultural transformation by mobilising substantial new funds for African farmers and the value chains that support them".
For his part, IFC managing director Makhtar Diop underscored the crucial role of agriculture in Africa and expressed his enthusiasm for expanding the partnership with the OCP to attract investment and improve food production on the continent.
Diop also pledged that "both parties will commit to seek new resources to grow the platform and attract partners with a common vision and potential investors to join them in this important and timely project".
In addition to attracting new investors that respect social, economic and environmental measures, the platform will conduct in-depth studies of specific value chains to identify challenges and design effective solutions. The aim is to produce African champions and facilitate the sharing of best practices to drive success across the continent.
It is worth recalling that this platform has already partnered with the Bank of Africa to improve access to fertilisers and other inputs for African farmers and agro-processors. Specific projects focusing on the cashew nut and rice value chains have been designed in Côte d'Ivoire, and similar projects are being prepared for Cameroon, Gabon and other African countries.
The platform will also benefit from the Moroccan experience of INNOVX, a multi-sectoral platform initiated by the Mohammed VI Polytechnic University (UM6P), dedicated to building innovative and sustainable business and technology ecosystems with a strong social and environmental impact.
Throughout its history, the OCP Group has demonstrated a deep commitment to strengthening food security in Africa. The company has launched several initiatives and projects to support farmers and improve agricultural productivity across the continent. Proof of this is the donation of fertilisers to numerous African countries.
The partnership between OCP and IFC supports the previously signed partnership between OCP Africa and Microsoft's Africa Transformation Office that will use technology solutions to address the challenges facing African agriculture and agribusinesses; aiming to support smallholder farmers and other agribusiness actors across the continent by 2025.
In short, these partnerships have come at an opportune time when the African continent is suffering from impending food insecurity, to improve farmers' productivity and help them manage their businesses; as well as ensure access to agricultural products and financing services.
