This is IFC's first investment in Nepal's agribusiness sector. According to a statement issued by IFC, the company will use the funding to finance manufacturing capacity for high-margin value-added products such as soy flour nuggets, and refined oil, and streamline the food supply chain."In the backdrop of the earthquake that devastated the Himalayan country weeks ago, this financing package reaffirms that investors are not shying away from Nepal. Through IFC's investment and advice, we seek to rebuild this important sector and adopt best practices for production efficiency, environmental and social standards, and to upgrade technology," Anand Bagaria, managing director of Probiotech, said in the statement.
The financing will also enable Probiotech to expand its procurement and distribution networks. Currently, the company distributes its products through 100 registered dealers and 500 sub-dealers in 70 districts of Nepal. The new funding will enable the company to increase sourcing from over 8,000 farmers and food suppliers, improving food safety standards, and boosting their incomes.
"This project will increase the supply of quality soy-based protein, especially for the low-income people of Nepal where malnutrition is prevalent, and promote food security," said Patrick Leahy, Head of Industry, Manufacturing, Agribusiness and Services, IFC Asia Pacific in the statement.
Similarly, Vivek Pathak, IFC's Director for Asia-Pacific, said IFC remains committed to supporting Nepal as it rebuilds its agribusiness sector that employs 70 percent of the workforce. "This investment will help create jobs, both at the plant and farm level, and have a direct positive impact on farmers' incomes," he said in the statement.
As of March 2015, IFC has a committed portfolio of $3.3 billion across the agricultural value chain globally. IFC's agribusiness strategy aims to promote inclusive growth and environmental and social sustainability in agricultural supply chains. A past advisory project of IFC helped small poultry farmers in Nepal make their businesses more productive through better farm management practices that reduce costs, and improve poultry quality, according to the statement.
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