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Growth Financing Approved for Nigerian Agro-processors

Originally published by Trade Hub Communications

Three Nigerian agro-processors have received $1.35 million in commercial financing to support the purchase of new equipment and working capital, thanks to facilitation by the Trade Hub and its financial advisors’ network.

Leading cereals processor Graceco Limited received a $1 million debt facility from the Bank of Industry and Access Bank to finance the purchase of new equipment and additional working capital to scale-up production. This food processing company specializes in consumer goods and the production of maize flour, ground rice and other inputs for the confectionary industry. With the new financing, GraceCo plans to raise sales from $6.3 million in 2016 to $10 million in 2018 and create an additional 150 jobs.

Mayor Farms, which raises chickens and produces eggs and animal feed, received a $190,000 loan from Nigeria’s FCMB Bank to purchase raw materials and new equipment for its animal-feed line.

“Our major cost of production is animal feed for the birds,” said Mayor Farms’ Managing Director Mr. Yemi Ogundei. “With this new funding, we are able to buy and store more raw materials for production and remain competitive.’’

Woman-owned business Fair Deal produces poultry feeds and fish feed, as well as feed for rabbits, pets and ruminants. Fair Deal received a loan for $23,000 to purchase new equipment to automate its manual operations and scale-up current production.

To facilitate the loans, the Trade Hub’s Finance and Investment Specialist, Mr. William Addo, worked with two Nigerian financial advisors, Pearl Mutual Consulting and HighNet Resources.

Banyan Global is a subcontractor to Abt Associates on the West Africa Trade Hub Project.