News Wings

Tag: Decent Work and Economic Growth

  • British International Investment supports Nigeria’s agricultural sector with commitment to Valency International

    British International Investment supports Nigeria’s agricultural sector with commitment to Valency International

    …It will also provide market access indirectly to a further 60,000 smallholder farmers and boost agricultural output and export.

    British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, today announced it has signed legally binding documents to invest US$15m in equity into a Singapore-headquartered agricultural commodities trading house, Valency International (Valency), to fund their expansion of processing and warehouse infrastructure in Nigeria. The transaction is subject to regulatory approval and is expected to close in early 2024.

    In addition to its commitment of $15m, BII has an option to invest a further $35m in equity into Valency within two years of completion of its initial investment.

    Agriculture is a key contributor to Nigeria’s economy, accounting for a quarter of total gross domestic product, and employs more than one in three Nigerians. Crop production[1] is the largest segment within agriculture, accounting for about 87.6 per cent of the sector’s total output. However, food processing and manufacturing remains underdeveloped in the local agricultural sector.

    The new Valency facilities, funded by BII will strengthen partnerships with local farmers and processing centres to maximise their output and provide a more stable supply of premium-quality products. The projects are expected to reach at least an extra 60,000 farmers and create up to 2,800 jobs among low-income communities in Nigeria.

    BII, as the first institutional investor in Valency, will provide value-added support to the company in developing best practices in business integrity and Environmental and Social Management System (ESMS). Both parties will work closely to improve job quality and gender inclusion and enhance value creation.

    Jonny Baxter, UK Deputy High Commissioner said: “The UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate, but strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation. 

    “I am excited to welcome this new UK investment to help enhance Nigeria’s food processing capabilities, which will create jobs across the nation. We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”

    Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII said: “The strategic opportunity to catalyse growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential. We are proud to deepen our commitment to food security and smallholder farmers in Nigeria while creating jobs that enable industrialisation and facilitate regional and international trade.

    “We are delighted to partner with Valency, and we look forward to the significant impact and economic development that our catalytic capital will support.”

    Speaking on the signing, Mr. Sumit Jain, CEO of Valency International commented: “We have been careful and deliberate in our choice of partners for the next phase of our growth. While we have been approached by a variety of investor groups, we chose to partner with BII as we have been impressed by BII’s engagement to the regions where we have committed to invest substantially over the medium term. Equally we are privileged that BII has chosen Valency to drive its impact agenda in Nigeria in the growing food and agriculture sector.”

    Roman Frenkel, Head of Food and Agriculture at BII will join the Board of Valency as part of the transaction.

    BII’s commitment contributes to UN Sustainable Development Goal 8 on Decent work and economic growth.

  • BluePeak’s Inaugural Fund announces second investment in ieng, end-to-end infrastructure solutions provider to the telecommunication industry

    BluePeak’s Inaugural Fund announces second investment in ieng, end-to-end infrastructure solutions provider to the telecommunication industry

    BluePeak Private Capital – an alternative asset management firm with a strong focus on impact in Africa – today announced its investment in ieng, a pan-African provider of engineering and construction, operations and maintenance, and hybrid power solutions to Africa’s burgeoning telecom sector.

    The $20 million growth capital supports ieng’s geographic expansion plan across the continent, enabling the company to provide innovative and cost-effective solutions to a broader range of clients and industries, solidifying its position as a leading provider of end-to-end infrastructure services and cutting-edge solutions. In addition, the investment advances ieng’s strategy to meet growing consumer demand for telecom infrastructure services, boosting connectivity for last-mile access and deepening the firms’ footprint by providing catalytic capital for new contracts with blue-chip clients.

    Rami Matar, Partner at BluePeak Private Capital, commented: “Through reliable services and a strong track record, ieng has managed to position itself as a preeminent service provider to blue-chip telecom clients in Africa, competing head-to-head with global service providers. We are excited to support ieng and fund its growth plans as development in telecommunications narrows the gap in Africa’s digital divide and is a critical enabler of economic development, productivity, and inclusive growth.” 

    Rami Shibley, Founder, and CEO of ieng said: “We are excited to start this long-term partnership with BluePeak to support ieng’s continuous growth and development. The investment provides critical capital, enabling ieng to meet the increasing demand for reliable telecom services, improved connectivity, and more efficient power solutions”.

    Established in 2007 in Ghana, ieng gradually expanded its operations and is today a prominent service provider to blue-chip tower companies and mobile network operators across Africa. Over the years, the company has developed an extensive track record and currently maintains a portfolio of more than 23,000 towers on behalf of clients in growing economies across the continent including Nigeria, Ghana, Kenya, Uganda, the Democratic Republic of Congo, and beyond. Further, ieng has established an in-house hybrid power solution to reduce carbon emissions of telecom towers through transformative means.

    The telecommunications sector is poised for onward growth in Africa, on the back of: (i) growing mobile penetration, (ii) increasing number of internet users, and (iii) the rollout of 4G and 5G towers to improve and expand the quality of connectivity. ieng is well-positioned to leverage its competitive geographic reach and long-term relationships with clients to capitalize on the market opportunity and further scale its operations.

    The investment is aligned with the Fund’s impact agenda and will support ieng in strengthening mobile and internet connectivity and promoting evolutionary hybrid power solutions.

    BluePeak’s $20 million investment promotes UN’s Sustainable Development Goal 3- Good Health and Well-being, Goal 5- Gender Equality, Goal 7- Affordable and Clean Energy, Goal 8- Decent Work and Economic Growth, and Goal 9- Industry Innovation and Infrastructure.