Union Bank of Nigeria (“Union Bank”) and the Africa Agriculture and Trade Investment Fund (“AIF”) have announced that the Bank has secured a $25 million funding line from AATIF to expand its agricultural business footprint.
In response to the Nigerian government’s effort to reduce food imports and ultimately create a sustainable market for local farmers to sell their farm produce, Union Bank has anchored its food and agri-finance strategy around the promotion of local food processing.
This is according to a publication sighted by NIPC Intelligence.
The post further read that Union Bank boasts a long-standing track record in the agricultural sector and has since risen to become one of the top 5 agricultural financiers in Nigeria, highlighting the sector’s great potential for future expansion and innovation.
The Bank targets key value chains in rice, poultry, dairy, cassava, maize, and soybean, among others, and aims to provide tailor-made funding and technical support to the different actors along each of the selected value chains.
The funding from AATIF will support Union Bank’s expansion and outreach to Nigerian agri-businesses. The expected impact is linked to the development, and deployment of innovative agri-product offerings and an increase in funding directed to agricultural businesses. This is expected to further contribute to the growth of Nigeria’s competitive food and agricultural sector that is fully aligned with national priorities – including improving food security, increased agricultural production, and local food processing.
AATIF’s facility will also be accompanied by technical assistance support to improve efficiency and accelerate impact within the sector.
Commenting on the funding agreement, Mudassir Amray, Chief Executive Officer/Managing Director of Union Bank, said:
Union Bank has been a strong player and key contributor to agricultural development in Nigeria over decades and this partnership with AATIF will enable us to extend our support to the sector at a critical time for the economy where local production and food security are fundamental priorities for the country. This funding will deliver the required financing and technical support to producers, processors, and entrepreneurs within the ecosystem.
Also speaking about the partnership, Doris Köhn – Chair, AATIF Board of Directors said:
“Union Bank is a historic institution in Nigeria, and we welcome them as a new AATIF Partner Institution. Their work within the Nigerian agricultural sector to reach smallholder farmers, women, and youth has the potential to further serve as a cornerstone for the further growth of the country’s economy. We are excited to partner with the bank as it grows its capacity and outreach even further for years to come.”
The Africa Agriculture and Trade Investment Fund (AATIF)
The Africa Agriculture and Trade Investment Fund is a public-private partnership dedicated to promoting Africa’s foAgri Agri sector by providing patient capital and technical assistance. The fund provides debt financing to small, medium, and large-scale agribusinesses along the entire agriculture value chain and financial institutions active in the sector. DWS is acting as an investment advisor to AATIF. More information and contact details can be found on www.aatif.lu