Singapore’s Olam Agri says USD 200 million IFC loan to feed 40 million people

Singapore's Olam Agri on Friday said that a USD 200 million loan from the International Finance Corp (IFC) will support it to deliver millions of tonnes of staple foods to developing countries, including India, potentially feeding over 40 million people at a time of heightened food insecurity around the world.

The loan will be used to finance the purchase of wheat, maize, and soy from Canada, Germany, Latvia, Lithuania, and the US for delivery to the company's processing operations and customers in developing countries that rely heavily on imports of these staple foods.

These countries include Bangladesh, Cameroon, Chad, Egypt, Ghana, India, Indonesia, Nigeria, Pakistan, Senegal, Thailand, and Turkey, said Olam Agri on Thursday, talking about the latest disbursal.

The IFC has agreed to provide a loan of up to USD 200 million to Olam Agri, the food, feed, and fiber agribusiness subsidiary of Singapore-based Olam Group, the IFC said in a press release on Friday.

"This facility further supports us to continue to supply staple crops and ensure food security to some of the most populous countries in Asia and Africa most at risk of global food inflation," said N. Muthukumar, Chief Executive Officer, Operations at Olam Agri.

"We're delighted to continue our longstanding partnership with IFC, aligning with Olam Agri's focus on better access to food and nutrition for the most vulnerable and on strengthening global food security," he added.

"The impacts of the COVID-19 pandemic, the war in Ukraine, and climate change are having disastrous effects on food security for developing countries, erasing years of hard-won development gains," said Rana Karadsheh, Regional Industry Director, Manufacturing, Agribusiness and Services, Asia Pacific at IFC.

"Our partnerships with key agricultural commodity-trading companies such as Olam Agri are crucial to maintaining the flow of critical food staples between countries with surpluses and deficits, ensuring better food security for the world's poorest and most vulnerable populations," Karadsheh added.

The project is part of IFC's global efforts to address food insecurity, especially for poor and vulnerable populations that have been hit hard by food inflation.

Food prices have risen significantly over the last two years, driven by the impacts of COVID-19, adverse climate events, and the war in Ukraine, said a release from Olam Agri.

The number of food-insecure people in the world has been rising every year since the beginning of the pandemic, with more than half of countries globally experiencing a worsening situation. An estimated 928 million people were severely food insecure in 2020, according to the Food and Agriculture Organisation of the United Nations, an increase of 148 million from 2019.

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