World Bank Moves To Stop Soaring Food Prices In Africa

By Olawunmi Ojo

7th July 2008

International Finance Corporation (IFC), a member of the World Bank Group, has announced a new financing transaction to support private sector-led development of the agribusiness sector in Africa and alleviate the burden of soaring food prices for the poor.

The new initiative takes its investments in the sector in this fiscal year to over $70 million, a five-fold increase over its average for the last three years. IFC aims to significantly increase its investments to about $400 in the next two to three years. IFC Vice President for Sub-Saharan Africa, Thierry Tanoh said that with the group's $5 million loan to Bakhresa Grain Milling (BGM), Malawi, its total investments in Africa's Agribusiness sector this fiscal year rose to $72.5 million.

BGM Malawi will use the loan to re-finance part of its short-term debt, incremental working capital needs and recurrent capital expenditures. The loan will also help the company produce more food and create additional employment.

IFC have also invested in Ghana, Kenya, Uganda and Tanzania in the fiscal year, which ended June 30.
"Agriculture is a vital engine for economic development in Africa and contributes a major portion of GDP, employment and foreign exchange earnings. 'Increasing our activities in the sector is a vital part of our strategy to support private sector development and address challenges facing African businesses," Tanoh said. IFC supports projects across the food supply chain, including processing, logistics and distribution.

Source:  Guardian

Back to Top
Post Your Feedback