The loan is expected to help Grainpulse move towards the next stage of growth, by increasing food production in Uganda
International Finance Corporation (IFC) and the private sector window of the Global Agriculture and Food Security Program (GAFSP) have provided $11m of loan to Ugandan agribusiness Grainpulse to support its expansion and to increase food production in the country.
Grainpulse aims to use the loan to expand and become a one-stop-shop for farmers, offering them multiple services such as fertiliser blending. Grainpulse’s fertilisers are claimed to have been optimised to increase the yield of crops grown by Ugandan smallholder farmers.
The company will also buy crops from the local farmers including coffee, maize, and barley.
Grainpulse CEO and founder Hannington Karuhanga said: “Our partnership with IFC will help Grainpulse move to the next stage of growth. We chose to work with IFC because it takes a long-term view of our partnership and adds value beyond financing, in areas such as farmer linkages. We are aligned with IFC on our goal of supporting Ugandan farmers.”
IFC will help create an online platform for Ugandan farmers to access best practices
IFC will help Grainpulse to launch an online platform so that farmers can easily access information on best practices and train agro-input dealers and retailers on developing financial management skills to help them expand and gain access to finance.
IFC manufacturing, agribusiness and services senior director Tomasz Telma said: “Supporting the agribusiness sector is a major focus for IFC in Africa. This investment in Grainpulse will contribute to food security and economic growth in Uganda by helping increase farmers’ fertilizer use and improving their access to markets.”
The company processes and exports coffee, sources and mills grain and cereals from local farmers and blends fertiliser at its blending plant. Formerly known as Savannah Commodities, last year the company had become a joint venture, between Savannah and K+S AG, a German potash and salt company.
Last month, IFC provided €9m ($9.96m) in loans to three microfinance institutions to increase access to small agribusinesses and farmers in Kosovo.
The loans to the Agency for Finance in Kosovo (AFK), KEP Trust (KEP), Kreditimi Rural i Kosoves (KRK) are expected to support private sector development in Kosovo’s agricultural sector by increasing access to finance for micro and small enterprises.