Zimbabwean food producer Olivine Industries gets $8.25mn loan from AfDB

Olivine Industries Ltd. based in Zimbabwe has recently received the approval of a corporate loan of around USD 8.25 million from the African Development Bank. The objective is to support the company's food expansion plan in the country.

The African Development Bank approved the loan recently to enable Zimbabwe-based Olivine Industries Ltd. in constructing new processing plants for margarine and tomato sauce and install upgraded machinery with advanced technologies. The company plans to increase its domestic and regional production capacity and food supply.

"With this transaction, the Bank will provide long-term hard currency financing in the Zimbabwean market, and create a strong demonstration effect to both commercial and development finance institutions, which will encourage investments in agribusinesses in Zimbabwe," opined Atsuko Toda, Director, Agriculture Finance and Rural Development at the African Development Bank.

According to Atsuko Toda, as one of the largest food producers in Zimbabwe, Olivine Industries Ltd. presented a unique opportunity for the African Development Bank (AfDB) to participate in rebuilding agricultural value chains in Zimbabwe, thereby creating jobs, improving food security and nutrition while reducing the country's dependence on food imports. Once the company's production reaches an adequate level, this project can potentially support 200 to 300 local farmers through Olivine's corporate farming model to be developed in the near future.

The board members of AfDB cited that the transaction provided a good opportunity for the Bank to deepen effective private sector intervention in a transition state, while also promoting the 'Feed Africa' agenda that forms part of the Bank's High 5 strategic priorities.