British International Investment (BII), the UK’s development finance institution (DFI), has formalized a $15 million equity investment in Valency International, a Singapore-headquartered agricultural commodities trading house. The funds are earmarked for expanding processing and warehouse infrastructure in Nigeria, with a particular focus on strengthening partnerships with local farmers and processing centers to enhance output and ensure a more stable supply of premium-quality products.
The transaction, subject to regulatory approval, is expected to conclude in early 2024. BII’s commitment also includes an option to invest an additional $35 million in equity into Valency within two years of the initial investment’s completion.
The BII-backed Valency facilities aim to positively impact at least 60,000 farmers and create up to 2,800 jobs within low-income communities in Nigeria. The development aligns with the UK’s sustainable agriculture initiatives in Nigeria, contributing to mitigating greenhouse gas emissions, adapting to climate change, and fostering livelihoods. The investment is anticipated to fortify Nigeria’s food processing capabilities, fostering economic growth and supporting food security and poverty alleviation.
As the first institutional investor in Valency, BII is set to provide value-added support, assisting the company in developing best practices related to business integrity and the Environmental and Social Management System (ESMS). The collaboration will focus on improving job quality, promoting gender inclusion, and enhancing overall value creation.
Jonny Baxter, UK Deputy High Commissioner, expressed excitement about the new UK investment, emphasizing its potential to enhance Nigeria’s food processing capabilities and create jobs across the nation. The commitment reflects the UK’s dedication to supporting Nigeria’s agriculture sector and its role in facilitating economic growth.
Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, highlighted the strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector, leveraging the country’s significant food export potential. The commitment aims to deepen support for food security, smallholder farmers, and job creation, contributing to industrialization and facilitating regional and international trade.
Sumit Jain, CEO of Valency International, emphasized the careful selection of BII as a partner for the next phase of growth. Jain highlighted BII’s impressive engagement in regions targeted for substantial investment over the medium term. Roman Frenkel, Head of Food and Agriculture at BII, will join the Board of Valency as part of the transaction, further solidifying the collaboration’s strategic alignment and potential impact on Nigeria’s growing food and agriculture sector.
