Addis Ababa, Ethiopia - IFC, a member of the World Bank Group, and FMO today announced a €50 million loan to Habesha Breweries S.C. to help the company build its malt barley supply chain and increase farmer productivity. The loan is co-funded by 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. In addition to the financing, IFC and FMO are providing an advisory program to connect the country’s malt barley producers, the majority of which are smallholder farmers, to one of the country’s key supply chains. The project is expected to boost income for 15,000 smallholder barley farmers, double farm yields of participating barley producers and create 500 jobs. The transaction also represents the first loan made in Ethiopia by major European private sector financial institutions such as Rabobank and ING
“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,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa. “Given the acute shortages of foreign exchange in Ethiopia, it would be difficult for Habesha to achieve its local sourcing without the advisory support from IFC and FMO.”
“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,” said Linda Broekhuizen, FMO’s Chief Investment Officer. “We are also very pleased that Rabobank and ING join us in this transaction with their first loan made in Ethiopia.”
“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,” said Zewdu Negate, CEO, Habesha Breweries
About Habesha Breweries
Habesha Breweries S.C. was established by a group of local Ethiopian investors in 2009 and is currently 60 percent owned by Swinkels Family Brewers N.V., which invested in the Company in 2012. Habesha’s shareholders include 8,000 local and individual investors. For more information, visit https://www.habeshabreweries.com/