CÔTE D’IVOIRE – Yara International ASA, a global leader in crop nutrition has announced the divestment of its fertilizer import and distribution subsidiary in Ivory Coast to align with its 2030 Africa Food Systems Transformation strategy.
According to Yara, recognizing the ever-evolving challenges in the global food industry, Yara has undertaken a thorough analysis of its operations, considering market dynamics, regulatory environment, and strategic growth opportunities.
This evaluation has led to the decision to divest its position in Ivory Coast, warranting the allocation of resources and investments towards selected countries in the continent, which offer a higher potential for the successful implementation of its 2030 Africa Food Systems Transformation strategy.
The divestment transaction is anticipated to be finalized by the end of April 2024.
“The decision to divest is driven by the acknowledgment that Yara’s ambition to become a true leader in the Food Systems Transformation in Africa, can only be reached in a phased approach,” said Luis Alfredo Pérez, SVP of Yara Africa.
Pérez highlighted that Yara underscored that a necessary first step is to right-size our geographical footprint and prioritize those specific crops and regional segments offering the highest opportunity to establish closed-loop partnerships
According to him, this would secure a sustainable improvement in the Sub-Saharan smallholder farmer’s productivity and profitability.
On his part, Wikus Grové, Financial Director of Yara Africa noted that the move is in line with Yara’s pursuit of securing the necessary investments that the international fertilizer manufacturer believes that it is imperative that they streamline operations and exercise prudent capital allocation
“I am confident that this strategic decision will enable us to optimize returns, enhance shareholder value, and strategically position our company for sustained success in the years ahead,” said Grové.
Taz Hassim, HRBP Yara Africa assured employees that no job will be lost due to the divestment move.
“Yara has always put its employees at the forefront of its decision-making and at this point we can assure our employees that no jobs will be lost due to this decision, we value our talented workforce and understand that they are instrumental in our success,” said Taz Hassim.