IFC to increase barley production in Ethiopia, pumps out fund in Habesha BreweriesDevdiscourse News Desk | Addis Ababa | Updated: 26-12-2019 18:46 IST | Created: 26-12-2019 18:46 IST
The investment of International Finance Corporation in Habesha Breweries Share Company intends to assist the company expand operations in Ethiopia and augments local barley sourcing from smallholder farmers.
"The loan is co-funded by the Dutch development bank (FMO) and Dutch banks Coöperatieve Rabobank U.A. (Rabobank) and ING Bank N.V. (ING Bank). Ethiopia's brewing industry is fast growing and an important contributor to economic growth, but the sector imports as much as 90 percent of its malt barley needs," the press statement noted.
According to New Business Ethiopia, the project is likely to enhance income for around 15,000 smallholder barely farmers, almost double farm yields of participating barley producers and create around 500 jobs. "Programs that support local sourcing are critical to linking smallholder farmers to large supply chains, thus creating more economic opportunity and jobs for vital parts of the country's agriculture sector," the International Finance Corporation (IFC) Regional Director for Eastern Africa, Jumoke Jagun-Dokunmu opined.
"Increasing farmer access to improved agricultural inputs such as seeds and fertilizers and building the agronomic and technical capacity of local, smallholder barley producers in Ethiopia will create more jobs and higher efficiency," FMO's Chief Investment Officer, Linda Broekhuizen cited.
"Our partnership with IFC and other lenders is timely and key to growing the malt barley supply chain in Ethiopia. We aim to increase smallholder farmers from 1,000 to 14,000 in the next five years and improve household incomes. This investment has a purpose and feels like the right thing. I am extremely proud that we are able to continue to build and grow the brewery in partnership with the barley farmers and residents," the Chief Executive Officer of Habesha Breweries, Zewdu Negate elaborated.