news - FMO supports agricultural growth and economic development in Africa through partnership with Valency

FMO, Proparco, and DEG (the Dutch, French, and German development finance institutions) are supporting Valency International Group (Valency) in expanding its agricultural and food processing operations in Africa. This financing is in line with the institutions’ mandates to foster sustainable development, economic growth, and poverty reduction through private sector investment in Africa. The partnership will enable Valency to implement key projects that enhance food security, promote sustainable agricultural practices, and contribute to community development.

The syndicated financing from Proparco, DEG, and FMO represents a commitment to supporting Africa’s agricultural sector and local economies. The three development finance institutions are aligned in their goal of driving inclusive economic growth and job creation, particularly in sectors like agriculture, agribusiness, and sustainable food production.

Valency, with a strong presence in Nigeria through its subsidiary Valency Agro Nigeria Ltd, is already one of the country's leading players in the agricultural, agri-input and FMCG segments with a distribution footprint spread across 34 states. The company operates across several key industries, including edible nuts, oils and seeds, grains, and food processing, with a particular focus on sustainable and scalable agricultural solutions. This partnership will further enhance Valency's efforts to build local value chains and strengthen Nigeria’s role in the global agricultural market.

Valency have planned to carry out the following projects under this partnership:

• Expansion of Cashew Kernel factory from 50 MTS per day to 100 MTS per day. This will increase the cashew processing in the country by another 15K MTS per annum. Nearly all of this fully processed cashew nuts will be exported generating forex inflows from a non-oil source;
• Setting up of a Supply chain complex: Valency has invested over USD 12 MN in building mother warehouse at Ibadan which can store about 45K MTS of agro-commodities. This facility also has one of the largest drying yards in the country for cashew, soyabean and cocoa which dramatically cuts food waste and adds to ‘food security’.
• Expansion of FMCG factory:  Valency plans to expand its FMCG business, which will happen under Champion brand which is a brand fully developed in Nigeria. Currently Valency has custard, milk powder and choco powder in its portfolio of FMCG products with new product lines in the works.
• Setting up a multi seed crushing plant: Valency plans to set up multi seed crushing plant at Valency Industrial Park in Ibadan. This will be another large-scale initiative to scale up fully processed and value-added products out of Nigeria.

Hans Boogard, Director Agribusiness, Food & Water at FMO, added, “We are pleased to partner with our fellow Friendship Facility DFIs for this impactful transaction, which clearly underscores the importance of agriculture across the African continent. Our investment will not only support export diversification in Nigeria, but most importantly decent work and economic growth in more rural parts of the country, one of the core SDGs we focus on in our 2030 Strategy. We look forward to seeing the joint impact that will be created through this partnership.

“Proparco, leading this transaction for FMO and DEG, is proud to onboard Valency as a client, a group whose strategy and capacity to execute inspires confidence. Agriculture is the backbone of many economies in Africa, and this transaction reflects our shared belief in the power of agribusiness to create decent jobs and local added value. The agro-industrial projects in Nigeria that we finance will drive opportunities for smallholders and strengthen agricultural value chains. This initiative will also contribute to food security and generate foreign exchange revenue.”declaredReza Hassam Daya, Head of the Industry, Agriculture and Services Division at Proparco.

Rena Terfrüchte, head of the DEG’s department “Industries&Services Debt, Africa&EMECA”, commented: „We are very much looking forward to our cooperation with Valency. Our two companies share common strategic goals as the commitment to a sustainable economic development. The transaction will – for example - enhance local income, create local jobs and contribute to female empowerment. We also greatly appreciate the excellent collaboration with our long-standing partners FMO and Proparco in this transaction. The seamless cooperation of all financing partners has been invaluable in bringing this transaction to fruition.“

Sumit Jain, CEO of Valency International Group, shared his thoughts on the broader impact of the partnership: “We are thrilled to partner with Proparco, DEG, and FMO, three of the most respected development finance institutions in the world. This collaboration is a resounding validation of Valency’s strategy and execution in driving sustainable agricultural growth and economic development across Africa. Their confidence in our vision reinforces our commitment to building resilient supply chains, empowering local communities, and advancing innovative, sustainable practices. Together, we are poised to create transformative impacts—enhancing food security, increasing exports, and generating meaningful economic opportunities for the communities we serve. This partnership not only strengthens Valency’s ability to scale but also aligns perfectly with our mission to drive positive change across the continent.”