German development finance institution invests in Farm Secure
The DEG will be represented on the board of directors of Farmsecure Holdings. DEG has been financing private sector investments in developing and emerging market countries since 1962. The German investment and development company first became involved with Farmsecure through the establishment of its ‘AgroAfrica’ programme, which pledged 100-million-euro to the development of agriculture in developing countries through a partnership-led loan program in May, 2009.
Through ‘AgroAfrica’, DEG provided Standard Chartered Bank (SCB) with a guarantee which still forms part of Farmsecure’s facility with SCB providing the working capital for Farmsecure’s primary agricultural activities.
Farmsecure has always valued DEG as an international financing partner and has developed a strong and stable relationship with DEG. During the past eighteen months, the relationship has led to DEG now also becoming a shareholder in the Farmsecure Group.
Farmsecure is involved in the three main primary agricultural segments of livestock, field crops and horticultural crops. In addition, it is a major player in the importation and distribution of agricultural inputs (fertilizer, crop protection, packaging material and seed), and in the output chains of grain trading and fruit exports. The Group strongly believes in the necessity to apply the best available science and technology to farming, and its businesses are supported by the largest multi-disciplinary team of agricultural scientists and technologists in the industry. The combination of all these activities allows it to optimize full agricultural value chains in line with its vision of sustainability and profitability in agriculture.
Jerome Yazbek, Group CEO, commented that the Group has experienced exceptional growth, both organically and by acquisition, and therefore thought it prudent to further strengthen its balance sheet through this equity injection. "However, we were not only looking for any investor, but for one who shares our vision. We are delighted that we can now welcome DEG, one of the largest European development finance institutions, not only as a financing partner, but as a shareholder in our group."
For more information:
Chantal Yazbek
Farmsecure
Tel: +27 21 974 1950
info@farmsecure.co.za
www.farmsecure.co.za