USAID facilitates $205m equity investments for Nigerian agribusinesses
Over the past five years, the U.S.Agency for International Development (USAID) has promoted private sector-led economic growth in Nigeria by facilitating $205 million in debt and equity investments for Nigerian agribusinesses.
The agency has also provided partial risk guarantees that will support up to $120 million in loans to agricultural, health, and renewable energy businesses.
This was disclosed at the just-concluded two-day USAID-funded West Africa Trade & Investment Hub (Trade Hub) workshop on “Leveraging Private Sector Engagement to Promote Sustainable Impact”.
The two-day event highlights the Trade Hub’s efforts to expand trade and investment opportunities and improve livelihoods and communities in West Africa.
Nigeria has a vast untapped pool of labour in the largest economy and market in Africa, which, together, represent vast potential for economic growth.
Since the Trade Hub was launched in 2019, the project has catalysed 93 private-sector investments across 16 West African countries.
In Nigeria, partners include fruit and cereal processing companies, agricultural input companies, financial advisers, investment firms and anchor farms.
The Trade Hub has awarded $82.6 million in co-investment grants to these companies, generated over $463 million in sales, and created over 60,000 jobs.
There is an opportunity to become a dominant exporter and hub for the West Africa region and the broader continent.
The Trade Hub improves private sector competitiveness with a focus on increasing the agricultural productivity and profitability of smallholder farmers in Nigeria and promoting West Africa’s regional and international trade.
Using a market-based approach, the project also increases partnerships with firms in various sectors through a co-investment grant facility to improve private sector productivity, profitability, and competitiveness.
Speaking at today’s event, USAID Acting Mission Director Sara Werth remarked, “Together, with our private sector partners and local and national governments throughout the region, we are so proud of the results we have achieved till date.
As we continue to partner in the work necessary for sustainable economic growth, financial inclusion, and climate resilience, today’s learning event provides the environment to fuel continued collaboration and build new connections.”
During the event, private sector partners are sharing their successes in leveraging Trade Hub funds and direct partnerships with investment firms and businesses to unlock new private investment. They are also discussing the strategies implemented to grow their businesses while navigating challenges and crises such as COVID-19, insecurity, and inflation.
USAID leads international development and humanitarian efforts to save lives, reduce poverty, strengthen democratic governance, and help nations progress beyond assistance. In Nigeria, USAID supports humanitarian assistance, health systems strengthening, transparent and accountable governance, basic education, and a more market-led, trade-friendly economy.
