BURKINA FASO- Agroserv, a provider of sustainable agro-processing solutions in Burkina Faso, has received a €12.2 million (about US$14.5m) investment from social impact investor Oikocredit, impact investing group Investisseurs & Partenaires (I&P), and lenders BIO Invest and EDFI AgriFI.
Oikocredit and I&P are investing up to €6.2 million in Agroserv’s equity, while BIO and EDFI AgriFi will lend an additional €6 million to the company.
The investment will be used to build a new agro-processing plant in Bobo-Dioulasso, Burkina Faso, which raise the company’s daily processing capacity from the current 50 tonnes to more than 160 tonnes.
It will also allow Agroserv to diversify into higher-value-added products such as high-energy flour, pre-cooked cornmeal, and soya protein.
Agroserv was founded in 2008 by Siaka Sanon and currently processes and supplies good quality maize-based products to companies and households in Burkina Faso, sourcing from and providing technical assistance to more than 6,000 smallholder farmers.
The new investment will enable Agroserv to increase the number of smallholder farmers it works with from 6,000 to 12,000 and to provide them with access to sustainable and efficient processing solutions.
Siaka Sanon, Founder and Chief Executive Officer of Agroserv, said: “Beyond this significant financing which allows the realization of our agro-industrial project, Agroserv Industrie takes to profit from several decades of experience of Oikocredit and I&P in supporting of the businesses.”
On his part, Prevost Kla, Equity Investment Officer West Africa at Oikocredit, said the investment strengthens the company’s support for sustainable agro-processing companies and smallholder farmers.
Landry Parkouda, Investment Manager at I&P, said they are delighted to support such an impressive entrepreneurial adventure that improves small farmers’ lives and provides high-quality flours to the market.
Ouagadougou-headquartered Agroserv delivers good quality maize-based products to companies and households in Burkina Faso.
Government school canteens and the World Food Program are the other major off takers of the company’s value-added products
Agroserve also contributes to farmers’ welfare by participating in addressing key farming and rural challenges such as low crop yields, access to inputs and markets, unfair prices, and poor living standards.