Through the co-investment partnership, both Adefunke Desh and the Trade Hub will build on their work of supporting women working in the agricultural sector, including female rice farmers and distributors.
Abuja, NIGERIA—Through a $1.7 million co-investment from the USAID-funded West Africa Trade & Development Hub, Adefunke Desh Nigeria (ADN), an agribusiness specializing in the cultivation and processing of grains, will embark on its expansionary drive to significantly scale its operations. This project will be instrumental in improving ADN’s competitiveness, in turn boosting the incomes of its partner smallholder farmers, increasing supplies of quality grains, and aligning well with the U.S. Government’s Feed the Future initiative.
As a company supplying grain to Cadbury PLC, Nestlé PLC, Guinness Nigeria, and other specialized feed and food producers, ADN has a solid reputation for the high-quality standards it upholds. However, significant investment in the form of upgrades to its grain cleaning facility in northern Nigeria’s Kaduna State, new equipment and machines, and more staff are needed to improve ADN’s operations, consistently clean grains to meet international standards, and fulfill orders from its growing client base. With the $1.7 million co-investment grant, awarded under the Trade Hub’s COVID-19 rapid response initiative, ADN can address these challenges and leverage its earlier planned investments.
“This co-investment partnership will give ADN the additional capital needed to meet the growing demand for high-quality grains resulting from the increased health consciousness of consumers, a growing Nigeria population, and significant reductions in grain production due to COVID-19 and insecurity throughout the country,” says Adeoluwa Adeshola, ADN’s Managing Director.
As a key part of the project, ADN will also directly support 3,000 new smallholder farmers in northwest Nigeria producing maize, soybean, and sorghum—foods widely consumed in Nigeria. The smallholders will be provided with training in improved agronomic and farm management practices. ADN will also purchase 17,000 metric tons of additional grains supplied by local aggregators and farmers within the project. Assistance to the smallholders’ ties directly into assistance to ADN. As multinational partners pay premium prices for ADN’s quality grains made possible through an improved facility and enhanced operations, the company can purchase smallholders’ grains at more competitive prices.
Altogether, the co-investment grant will have a significant impact on ADN’s operations, suppliers, customers, and partners. Equally important, in line with other Trade Hub-backed initiatives, the project is expected to increase market-led job creation.
According to Adeshola, if ADN scales operations to 90 percent of its installed capacity with the co-investment, it can create at least 250 jobs (90 percent of which will be held by women and youth). Additionally, at least five laborers earn daily income per hectare of land farmed to produce the grain supplied to ADN. Therefore, cultivating 3,000 hectares of land will result in approximately 15,000 casual labor jobs in addition to the 3,000 smallholder farmer jobs guaranteed as part of the project.
ADN’s success is expected to lead to increased private sector investment into Nigeria’s agricultural sector.
“Ultimately, the project aims to institute a replicable model for other companies and private sector investors that will improve food security, increase farmer incomes, and produce top quality/toxin-free home-grown grains for consumers,” says Michael Clements, Chief of Party for the Trade Hub.
About the Trade Hub: The Trade Hub is a USAID-funded initiative to co-invest with the private sector to generate new private investment, create new jobs, and increase the value of regional and international exports in West Africa.
Adefunke Desh Nigeria: Adefunke Desh Nigeria is a leader in the Nigerian agribusiness space specializing in the cultivation and processing of grains such as maize, sorghum, millet, and soybeans for local and international consumers.
About USAID: The United States Agency for International Development is the lead U.S. Government agency that works to end extreme global poverty and enable resilient, democratic societies to realize their potential.
About Feed the Future: The Feed the Future initiative is the U.S. Government’s global hunger and food security initiative. It works to give families and communities in some of the world’s poorest countries the freedom and opportunity to lift themselves out of food insecurity and malnutrition.