Promasidor to inject N8bn into operations
Promasidor, one of Nigeria’s multinational manufacturing giants, will soon inject over eight Billion Naira (N8bn) into the nation’s economy through a $25 million loan which it is accessing from the International Finance Corporation, a member of the World Bank Group.
When procured, the company, as its managing director, Mr. Olivier Thiry disclosed, would inject the amount into its production process with a view to increasing efficiency and to produce more products for the benefit of its ever growing customers across the nation.
According to Thiry, the capital injection would be used to support the purchase of new machinery which would enable the company increase efficiency, expand production and develop new products, leading to greater availability of nutritious food products in Nigeria at competitive prices.
Said he, “This is a very competitive market for food products. We expect that this investment will help us optimize production costs, enabling us to reach and nourish more consumers with our affordable range of quality products.
“We will also target our portfolio extension by gradual integration of more locally sourced raw materials from producers in Nigeria and widening our network of distributors.”
He further disclosed that the investment became necessary in view of the numerous business opportunities in the Nigerian market, adding that Promasidor Nigeria was currently faced with production limitations as it could not meet the production demands from different parts of the country in terms of quantity.
Adding the International Finance Corporation, IFC’s perspective to the loan agreement, its Head of Manufacturing, Agribusiness and Services for sub-Saharan Africa, Mary-Jean Moyo, said: “Agribusiness is Nigeria’s largest employer. Increasing investment in food processing companies like Promasidor Nigeria Limited will help diversify Nigeria’s economy and improve nutrition by expanding the supply of affordable food.”
The IFC, Moyo added, invests in agribusiness to enhance productivity with the goals of greater food security, higher rural incomes and improving environmental and social sustainability, disclosing that the average African farm was performing at just 40 per cent of its potential.