IFC’s $23m boost Johnvents Industries to strengthen cocoa export capability

Business a.m.

Johnvents Industries Limited, one of Nigeria’s largest cocoa processing facilities, has been granted a $23.3 million financing package by the International Finance Corporation (IFC). The funding will be instrumental in expanding the company’s cocoa processing operations and boosting its export capacity, positioning Nigeria as a competitive player in global cocoa markets.

The $23.3 million financing package comprises a diverse set of funding mechanisms to support the agribusiness group’s cocoa processing expansion. The facility encompasses an $8.5 million loan from IFC’s account, a $6.3 million loan equivalent in Nigerian naira from the International Development Association’s private sector window’s local currency facility, and an $8.5 million loan by the Global Agriculture and Food Security Programme’s private sector window.

In addition to facilitating the expansion of Johnvents Industries Limited’s cocoa processing plant in Ondo State, the IFC’s funding package will also enable the agribusiness group to double its production capacity up to 120 metric tonnes of cocoa per day. The increased processing capacity is expected to provide a stable market and consistent revenue for cocoa farmers in the company’s supply chain, further supporting their livelihoods and contributing to a more resilient and prosperous cocoa industry in Nigeria.

Besides the funding provided to Johnvents Industries Limited, IFC will also offer a range of advisory services to assist the agribusiness group in achieving its goals of sustainability, traceability, and inclusivity. Among the advisory services, IFC will help Johnvents to increase the participation of women across its workforce and value chain. In addition, IFC will provide guidance on strengthening the company’s existing sustainability and traceability programmes, as well as advise Johnvents on efficient digitalisation and sourcing strategies to maximise the potential of its current processing capacity of cocoa-based products.

IFC’s financing package will also provide the means for Johnvents Industries Limited to transition from its current reliance on diesel generators and wood-based boilers to a new, efficient power generation system that uses natural gas. By adopting a cleaner and more efficient energy source, Johnvents will be able to reduce its environmental impact and enhance its reputation as a responsible corporate citizen, while still meeting its production targets and delivering quality products to global markets.

Expressing confidence in the transformative potential of IFC’s support, Johnvents Industries Limited stated that with this assistance, the company can tap into new markets, cater to higher demand, and significantly enhance Nigeria’s competitiveness in the global cocoa market, thereby boosting the country’s export earnings.

To ensure the sustainable growth of Nigeria’s cocoa industry, Johnvents has set ambitious targets to achieve 100 percent traceable cocoa and at least 90 percent certified cocoa by 2027.

Commenting on the development, IFC’s support, John Alamu, Johnvents Industries Limited’s group managing director, described the partnership as a significant milestone in the company’s mission to revolutionise Nigeria’s cocoa sector and broader agricultural industry. According to Alamu, the IFC’s support will not only help Johnvents strengthen its operations, but will also reaffirm the company’s commitment to achieving sustainable growth, improving traceability, and promoting inclusiveness in the cocoa supply chain.

“By doubling our production capacity and increasing export potential, we aim to deliver more value to all stakeholders and significantly contribute to the nation’s economic diversification and development. We are immensely grateful for IFC’s support,” he said.

Makhtar Diop, managing director of the International Finance Corporation, underscored the critical role of agribusiness in driving value addition and diversifying Nigeria’s economy. He noted that IFC’s financing and advisory support for Johnvents Industries Limited will be instrumental in bolstering the company’s operations, boosting Nigeria’s cocoa sector, and promoting job creation and retention