IFC invests $7m into Kenya’s horticulture firm Vegpro to expand Ghana operations
The International Finance Corporation (IFC) on June 15, 2012 announced an investment of $7 million to support the expansion of Vegpro Group into Ghana.
The funds will help the Kenyan firm to expand into its new Ghana market allowing sustainable land development while providing jobs and creating a supply chain that includes small-scale farmers.
“The Vegpro Group will use IFC’s investment towards developing a 1,070 ha farm in Ghana, to boost the company’s vegetable production and meet increasing demand from existing clients in Europe. The company will also work with 800 smallholder farmers in Ghana, giving them access to international markets for the first time,” the World Bank Group member said in a statement.
According to the IFC, Vegpro will build on Ghana’s policies that have helped improve infrastructure for agribusiness.
Ghana recently invested in a perishable cargo centre at the Kotoka International Airport in Accra and the Kpong Left Bank Irrigation Project.
“Vegpro will be the anchor tenant in the project irrigation project, after signing a 50 year lease with the Ghanaian government,” the IFC says.
The company has also formed a new joint venture company with Air Ghana to manage the new airside perishables centre at the Kotoka International Airport.
Yoande Duhem, IFC Director for West and Central Africa said, “Vegpro Group’s proactive growth in Ghana demonstrates the opportunities for African companies in the agribusiness sector. IFC is eager to help companies like Vegpro that want to improve food production, and expand the African agribusiness sector beyond the home market.”
According to Vegpro’s Business Development Director, James Cartwright, the company will apply the lessons from thirty years of horticulture business in Kenya, to create similar success and productivity. “Crops, like, chilies, butternut and baby corn, which grow less well in Kenya will flourish in Ghana. Vegpro aims to train as many as 1,500 workers new to the sector by 2014,” he added.
The IFC said it will provide advisory services on corporate governance to help position Vegpro Group as a strong international company.
By Ekow Quandzie