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Madagascar : IFC Invests in SMTP to Support Agribusiness in Madagascar.

IFC, a member of the World Bank Group, and the Global Agriculture and Food Security Program announced an investment of $3 million in SMTP Group to expand the companys poultry operations in Madagascar, creating jobs, increasing food supply and supporting economic recovery in the country. The financing will be issued in Malagasy Ariary, helping SMTP limit foreign currency risk.

Three of the SMTP Groups subsidiaries Agrifarm, Agrival and Mabel will benefit from the investment. The companies will use the funds to double the production of day-old chicks, increase supply of animal feed, and will set up a modern chicken slaughterhouse, which will supply over 15,000 tons of chicken meat per year.

SMTPs expansion will also help farmers in Madagascar, who supply maize for animal feed production. As the Groups poultry operations grow, the number of farmers supplying maize and other inputs is expected to increase from 1,200 to 4,000. SMTP will advise farmers on how to increase their productivity and revenues, providing them with hands-on assistance, fertilizers and agricultural inputs.

Poultry production is a way of life for many rural families in Madagascar. Nearly all poultry is grown in non-industrial, backyard operations, with little attention to health and safety standards. As a result, Madagascars poultry sector is not competitive globally, given its lack of industrialization and scale. IFC will advise SMTP on design of the new poultry farm and slaughterhouse, ensuring that the facilities meet the international health and sanitary standards required for meat exports.

Danil Ismael, the Chairman of SMTP said, The investment will enable SMTP to expand its poultry operations despite the challenging economic environment in Madagascar. We are committed to work closely with IFC to adopt international best practices, so we can deliver high-quality food products to Malagasy consumers.

Oumar Seydi, IFC Director for Eastern and Southern Africa said, IFC and the Global Agriculture and Food Security programs investment in SMTP supports the growth of a local company which will increase food supply, create jobs, support thousands of farmers in Madagascar. By introducing international best practices, SMTP will help make Madagascars agribusiness sector globally competitive, which is vital for the countrys economic recovery.

Supporting agribusiness along the value chain is a cornerstone of IFCs strategy in Africa. Agriculture employs over half of Africas labor force, and has a strong impact on micro, small and medium-sized enterprises.

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Publication:Mena Report
Geographic Code:6MADA
Date:Mar 23, 2016
Words:405
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