Entrepreneurs in the private sector in collaboration with the Global Agriculture and Food Security Program (GAFSP) aim to support companies that have built and ran Malt plants in Ethiopia. Supporting farmers in the locality and spurring economic growth of the country are entailed in their plans, according to the press statement from International Financial Cooperation (IFC),” a member of the World Bank Group.
The Green field investment will support Soufflet Malt Ethiopia, a subordinate of French company Group Soufflet, modernize Ethiopia’s malt supply chain and boost the amount of local production of the key beer component. The malting plant, in Addis Ababa’s Lemi Industrial Park, is expected to produce 110,000 metric tons of malt drink annually. IFC and the GAFSP Private Sector Window each has the plan to investing €10 million in the project.
Jean-Michel Soufflet, Chairman of Group Soufflet, said, “This is Group of Soufflet’s first investment in sub-Saharan Africa countries and marks a strategic milestone for the company. IFC has been a strategic partner of our group for many years, and IFC’s support is very valuable for the success of our Greenfield investment in Ethiopia. We are also counting on IFC’s expertise in agribusiness to support us put in place an extensive network of barley agriculturalists and increase agricultural productivity level with strong market chain in Ethiopia.”
Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa, said, “IFC’s investment in Soufflet Malt Ethiopia will boost local malt sourcing by helping smallholder farmers increase productivity, strengthening the country’s agricultural supply chain. Supporting agriculture is a major focus of IFC’s strategy in Ethiopia.”
IFC, a long-standing partner with Group Soufflet, will also provide advisory services to more than 40,000 smallholder barley farmers to strengthen their links between the malt supply chains. The longer-term goal is to help double the smallholder barley farmer’s yields per year.
Soufflet Ethiopia belives 100 percent of its barley should be locally produced with 80 percent from smallholder farmers. Currently, around 70 percent of the malt used by Ethiopian brewers is imported. Group Soufflet is active in 22 countries in Asia, Europe, and South America. This project is one of the plans that target developing countries to register prosperity in cooperation work.
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. Jean-Michel concluded that “We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities wherever they are needed most.”
And “in the fiscal year 2019, we delivered more than USD19 billion in long-term financing for developing countries of Africa and others, leveraging the power of the private sector to end extreme poverty level and boost shared prosperity of the developing countries.”
The Ethiopian Herald, Sunday Edition November 3/2019
BY MUSSA MUHAMMED
