Washington, DC, July 2, 2014—IFC,
a member of the World Bank Group, and the Private Sector Window of the
Global Agriculture and Food Security Program (GAFSP) will each invest $5
million in Malawi Mangoes to support expansion of its tropical fruit production
and processing operations.
On final certification, expected in the coming months, Malawi Mangoes will
be the first ever banana plantation in Africa to receive Rainforest Alliance
accreditation and the first mango plantation in the World to receive this
accreditation. The organization plans to scale up operations and
exports, bringing more rural jobs and increasing opportunities for farmers
to supply fruit to the company through its smallholder outreach and development
The Dutch development bank, FMO, will also invest $5 million to Malawi
Mangoes, through the Dutch government fund FOM-OS, concurrent with the
The overall $15 million financing package will fund capital investment
plans, including an expanded nursery, a new 1,200 hectare plantation, installation
of climate-smart drip irrigation technology across the new farm and nursery,
as well as expanded ripening chamber capacity and a second processing line
at the processing facility.
Jonathan Jacobs and Craig Hardie, joint Founders and Managing Directors
of Malawi Mangoes said, "Malawi only needs investment and access to
markets to become a regional leader in high-value horticultural production
and processing. This investment by IFC and FMO, combined with the empowerment
of local people, puts us on the path to our goal of becoming the leading
agro-processing company on the African continent over the next five years.”
German Vegarra, IFC’s Regional Head of Manufacturing, Agribusiness and
Services said, “Malawi is one of the poorest countries in the world, and
80 percent of its citizens live in rural areas. Sustainable agribusiness
is an opportunity for developing countries to diversify exports, generate
foreign exchange, transfer core skills, create jobs, and reduce poverty.
Linda Broekhuizen, FMO’s Chief Investment Officer said, “With this new
investment Malawi Mangoes can start benefiting from economies of scale
while at the same time empowering local people thus having a tremendous
positive impact on the local rural employment in Salima District."
Expanding middle classes in developing countries are boosting demand for
fruit juices and drinks. Malawi Mangos aims to meet this demand by increasing
sustainable production and processing. The company
plans to increase employees fourfold over the next four years to about
2,600 full time staff. During this time, it also plans to increase the
number of farmers who supply fruit to the company to approximately 6,000.
It will continue to apply for Rain Forest Alliance certification
for all of its plantations going forward.
Helping small farmers gain access to finance, agricultural inputs like
seeds, and improved infrastructure is part of IFC’s strategy for improving
food security and rural incomes. IFC made a record $4.5 billion worth of
agriculture-related investments in fiscal year 2013.
Donor partners to the Private Sector Window of GAFSP are the governments
of Canada, Japan, the Netherlands, the U.K. and the U.S. This funding makes
it possible for IFC to invest in riskier projects with strong potential
to promote food security and reduce poverty.
GAFSP is a global effort to aid vulnerable
populations afflicted by hunger and poverty. It takes up where emergency
and recovery assistance leaves off, targeting transformative and lasting
change in agriculture and food security within poor countries. Following
commitments by G-8 leaders at the L’Aquila Summit in July 2009 and reaffirmed
by the G-20 Summit in Pittsburgh in September 2009, GAFSP was established
in April 2010. IFC manages the GAFSP private sector window and IBRD manages
the public sector part of the program. For more information, visit http://www.gafspfund.org.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
FMO (the Netherlands Development Finance Company) is the Dutch development
bank. FMO supports sustainable private sector growth in developing and
emerging markets by investing in ambitious entrepreneurs. FMO believes
a strong private sector leads to economic and social development, empowering
people to employ their skills and improve their quality of life. FMO focuses
on three sectors that have high development impact: financial institutions,
energy, and agribusiness, food & water. FMO manages several funds for
the Dutch government in order to support higher risk projects promising
greater development impact. With an investment portfolio of EUR 6.3 billion,
FMO is one of the largest European bilateral private sector development
banks. For more information visit, www.fmo.nl
The goal of FOM-OS is to make private ventures possible with a strong focus
on social, economic, and environmental impact in developing countries,
preferably in the field of food security.
About Malawi Mangoes
Malawi Mangoes was founded in 2009 by Mr. Jonathan Jacobs and Mr. Craig
Hardie from the realisation that Malawi has some of the best conditions
in the world for growing tropical fruit together with resourceful, hard-working
people looking for the opportunity to be self-sufficient, but who haven’t
had the means to tap into export markets. Malawi Mangoes, headquartered
in the Salima District of Malawi, produces and markets mango and banana
not from concentrate fruit puree and fresh fruits primarily for export
markets in Africa, the Middle East and Europe.