IFC and the Dutch entrepreneurial development bank (FMO) today partnered to provide funding and advisory support to United Exports Limited to help the company increase sustainable blueberry production in South Africa, create jobs, and boost women's participation in management roles.
IFC and FMO will loan up to €14 million to United Exports, supporting the fruit logistics company's strategy to mitigate the impact of frost through the adoption of next generation OZblu® blueberry varieties that fall outside the frost window and expand its blueberry orchards to frost free areas, including to the Western Cape region.
About a third of the funding is solely dedicated to climate-smart agriculture practices and will help the company adopt drip irrigation systems and water meters, among other measures.
The support is expected to strengthen United Exports' agribusiness value chain and create up to 1,340 direct and indirect jobs by 2030. IFC will also help the company develop training opportunities across all skill levels for new employees and provide capacity building to improve women's participation in management roles.
"Our track record in terms of FDI, foreign earnings, job creation and tackling gender inequality is something we are very proud of, and this has only been possible with the commitment and partnership of IFC and FMO," said Founder and Executive Chairman of United Exports, Roger Horak.
"FMO is proud to once again support United Exports to increase financial inclusion across South Africa's agricultural landscape by investing in the country's emerging blueberry industry," said FMO Director of Agribusiness, Food and Water, Pieternel Boogaard. "This transaction aligns perfectly with our agri strategy to support sustainable growth with both climate change adaptation and development impact."
"IFC's longstanding support for United Exports aligns with our strategy to help promote climate-smart agribusiness, create jobs and enhance women's participation in management in South Africa," said IFC Country Manager for South Africa, Adamou Labara. "This project will play a key role in helping to position South Africa as an emerging blueberry production hub."
The agriculture sector accounts for 27 percent of total employment in South Africa but contributes only 2.5 percent to GDP and 1 percent to exports. This presents an opportunity to significantly enhance the sector's contribution to economic growth.
While the South African blueberry industry is relatively nascent, it plays a key role in supporting small and medium-sized enterprise (SME) farmers, especially in rural areas.
The investment announced today builds on the €30 million in funding IFC, FMO, and the Investment Fund for Developing Countries (IFU) provided to United Exports in 2018 to help the company create jobs and boost exports. IFC and FMO also each provided a €1.5 million loan to support the company weather the effects of COVID-19.
For more information:
www.ifc.org
www.fmo.nl
www.united-exports.com