BII backs Singaporean company's expansion in Nigeria
BII backs Singaporean company's expansion in Nigeria
British International Investment, the UK’s DFI, has signed legally binding documents to invest $15 million in equity into agricultural commodities trading house, Valency International.
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British International Investment (BII), the UK’s development finance institution and impact investor, has signed legally binding documents to invest $15 million in equity into a Singapore-headquartered agricultural commodities trading house, Valency International, to fund their expansion of processing and warehouse infrastructure in Nigeria. The transaction is subject to regulatory approval and is expected to close in early 2024.
In addition to its commitment of $15 million, BII has an option to invest a further $35m in equity into Valency within two years of completion of its initial investment.
Agriculture is a key contributor to Nigeria’s economy, accounting for a quarter of total gross domestic product, and employs more than one in three Nigerians. Crop production is the largest segment within agriculture and it accounts for about 87.6 per cent of the sector’s total output. However, food processing and manufacturing remains underdeveloped in the local agricultural sector.
The new Valency facilities, funded by BII will strengthen partnerships with local farmers and processing centres to maximise their output and provide a more stable supply of premium-quality products. The projects are expected to reach at least an extra 60,000 farmers and create up to 2,800 jobs among low-income communities in Nigeria.
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