IFC, a member of the World Bank Group, and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), today announced an $11 million loan to Ugandan agribusiness company Grainpulse to support its expansion and strengthen its farmer supply chain, increasing food production and economic growth in the country.
The investment will help Grainpulse expand to become a one-stop-shop for farmers, providing them with multiple services, such as fertilizer blending. The company’s fertilizers are optimized to increase the yields of crops grown by Ugandan smallholder farmers. Grainpulse also buys these crops, including coffee, maize, and barley, from local farmers.
Hannington Karuhanga, Grainpulse CEO and Founder, said, “Our partnership with IFC will help Grainpulse move to the next stage of growth. We chose to work with IFC because it takes a long-term view of our partnership and adds value beyond financing, in areas such as farmer linkages. We are aligned with IFC on our goal of supporting Ugandan farmers.”
IFC will also help Grainpulse launch an online platform so farmers can easily access information on best practices, and train agro-input dealers and retailers on financial management skills to help them expand and secure access to finance.
Grainpulse processes and exports coffee, sources and mills grain and cereals from local farmers, and blends fertilizer at its blending plant, the first in Uganda. The company was formerly known as Savannah Commodities Company. In September 2018, Grainpulse became a joint venture between Savannah and K+S AG, a global potash and salt company headquartered in Germany.
Janina Kaiser, K+S’s Head of Strategy & Innovation for Sub-Saharan Africa, said “For K+S, the partnership with Grainpulse is the very first step in building a presence in sub-Saharan Africa, which is an important part of our _Shaping 2030 Strategy_. K+S welcomes IFC as a partner who understands the African business environment as well as global best practices.”
Tomasz Telma, IFC’s Senior Director for Manufacturing, Agribusiness and Services, said, “Supporting the agribusiness sector is a major focus for IFC in Africa. This investment in Grainpulse will contribute to food security and economic growth in Uganda by helping increase farmers’ fertilizer use and improving their access to markets.” Grainpulse expects that its IFC-supported expansion will increase its reach from 36,000 farmers to more than 300,000 by June 2023.
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 where they are needed most. In fiscal year 2019, we delivered more than $19 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 Global Agriculture and Food Security Program (GAFSP) is a global effort that pools donor resources to fund programs focused on increasing agricultural productivity as a way to reduce poverty and increase food and nutrition security. GAFSP targets countries with the highest rates of poverty and hunger. The Public Sector Window helps governments with national agriculture and food security plans. The Private Sector Window, managed by IFC and supported by the governments of Australia, Canada, Japan, the Netherlands, the United Kingdom and the United States, provides long- and short-term loans, credit guarantees, and equity as well as technical assistance to private sector companies and financial intermediaries in eligible IDA countries. It supports projects that improve productivity and growth, deepen farmer’s links to markets and access to finance, and increase capacity and technical skills.