Armajaro Trading hits $55m investment jackpot
By: Masahudu Ankiilu Kunateh
Armajaro Trading, a leading global soft commodity supplier, announced that it has received a $55m investment from IFC and the IFC African, Latin American and Caribbean Fund (‘IFC ALAC Fund).
The investment will increase Armajaro Trading’s sourcing capabilities in origin countries and help farmers to enhance their livelihoods through sustainable farming practices, while improving Armajaro Trading’s funding flexibility and strengthening its balance sheet. As part of the agreement, Armajaro Trading will continue to work closely with the IFC Advisory Services Arm on farmer welfare projects.
IFC is a member of the World Bank Group, while the IFC ALAC Fund is managed by IFC Asset Management Company, a wholly-owned subsidiary of IFC.
Richard Ryan, CEO of Armajaro Trading, commented, “We are delighted to receive this endorsement from a high quality investor such as IFC, which will help us in our goal to become the partner of choice in the agri-commodity supply chain. This support will enable us to grow our business across the markets and countries in which we operate, whilst ensuring we continue to lead the sector in traceability and sustainability. ”
Vipul Prakash, IFC Director for Manufacturing, Agribusiness, and Services Asia-Pacific, said, “IFC’s investment represents a unique opportunity to partner with a global agri-commodities business leader that is active in emerging markets. IFC’s investment will help Armajaro Trading to continue improving the livelihood of its farming communities and develop traceable and sustainable supply chains working closely with IFC, its customers and the local communities.”
Sujoy Bose, Chief Investment Officer and Head of the IFC ALAC Fund, remarked “Armajaro Trading’s extensive sourcing network, deep customer relationships with global buyers, strong expertise in the commodities it trades and its focus on traceable and sustainable products has put the company in a unique position in the fast-growing agri-commodities market. We are excited to partner with Armajaro Trading and its management to build on this platform to take advantage of significant growth opportunities in new territories and adjacent commodities”.
Armajaro Trading specialises in the sourcing and delivery of cocoa, coffee and sugar and currently has commercial operations in 21 countries and sourcing operations in the world’s key cocoa and coffee producing countries including Ghana, Nigeria, Ivory Coast, Indonesia, Vietnam Brazil, Colombia, Ecuador, Kenya and Tanzania.
Ghananewslink.com gathered that Armajaro Trading is a world leader in traceable cocoa and coffee and its focus on the traceability of its products is integral to its business model. Its existing up-country infrastructure allows it to have close contact with farmers and co-operatives and it is thus able to capitalise on the growing demand for traceable and/or sustainable commodities. Future business growth and shareholder value will be substantially driven by developing infrastructure to meet the demand for traceable and sustainable commodities and by offering value added services such as long term supply agreements and price risk management.
In addition to IFC’s investment, Armajaro Trading will continue to work with IFC’s Advisory Services arm to identify specific projects that will enhance the welfare of farmers and their communities. IFC will assist in securing finance for such projects from NGOs, development agencies and charities and will be delivered through Armajaro Trading’s not-for profit company, Source Trust.
Projects are expected to deliver direct benefits to rural populations in existing and new Armajaro Trading operations across Africa and Asia. Projects will adopt sustainability and traceability initiatives, such as increasing the number of farmers reached/trained, improved Environmental & Social (“E&S”) practices in the traceable portion of the supply chain and increasing farmers’ income through certification, training and improved access to market. The London headquarteredArmajaro Trading was advised on this transaction by Greenhill & Co.
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