Country: Benin, Nigeria, and Tanzania
Type of company: Intermediary Investment Company
Purpose: Purchase organic soybeans, soymeal, and sunflower seeds from local producers for storage, packaging and exporting
Financial close: 15th December 2022
Tenor: 24 months
Type of Investment: Senior Secured Trade Finance Facility
S&E Category: B
On 15th December 2022, AATIF financed the first trade under the USD/EUR 1.5m senior secured trade finance facility with Vantage Netherlands B.V. to finance the export of raw organic soybeans from certified smallholder farmers in Nigeria and Benin, and organic sunflower seeds from Tanzania to Europe / US.
Vantage India is an experienced supplier of certified organic ingredients to importers, manufacturers, and distributors all over the globe. Starting off as a pure trader of organic soybeans out of India, they have over the years developed into an integrated agri-business with eight crushing machines of 20 MT per day each and its own out-grower scheme of over 30,000 organically certified smallholder farmers supplying soybean to the factory in India.
AATIF’s investment is expected to impact African farmers, with 100% of produce being sourced from organically certified smallholders located in the most remote parts of Benin, Nigeria, and Tanzania, allowing the Fund to strengthen its profile towards supporting smallholder farmers.
Technical Assistance Project Highlight
Outgrower Manager and training for smallholder farmers
Challenge: Following the restrictions implemented during the COVID-19 pandemic, Vantage expressed an immediate need for strong “on the ground” presence to rebuild relationships with the smallholder farmers in its sourcing network in Nigeria and proactively increase and improve training programs.
TA Intervention: To reinstate the relationship with smallholder farmers in Vantage’s sourcing network in Nigeria and consequently improve the overall management of its organic soybean outgrower scheme through the establishment of a new permanent position of an Outgrower Manager. In addition, additional support will be provided for developing and implementing a training program to capacity smallholder farmers.
Result: As a result of this TA measure, Vantage has a specialized Outgrower Manager to enhance the relationship and bonding with farmers and manage operational activities on the ground. Through the accompanying training program, Vantage is demonstrating “added value” to farmers and at the same time able to improve productivity and increase overall efficiency of the supply chain.
Local production
100%
of produce sourced locally
OUTREACH TO AGRICULTURAL PRODUCERS
43,000
Number of smallholders sourced from throughout-grower scheme
Number of male employees
Benin
Total 25-40*
(1 permanent staff,
25-40 casual labourers)
Nigeria
Total 25-40*
(1 permanent staff,
25-40 casual labourers)
Tanzania
Total 25-40**
(1 permanent staff,
25-40 casual labourers)
* Locally based country managers, but under Vantage India payroll
** Locally based country manager already there, but under Vantage India payroll. Casual labourers only to be hired when the first buying season starts.
TECHNICAL ASSISTANCE FACILITY
The TA Facility has supported Vantage through the implementation of three TA projects in total since 2022, this includes one baseline rapid appraisal study to assess the impact of the AATIF investment. The results are concluded in the IMPACT Brief.
TA Facility Projects
2022
Outgrower Manager and training for smallholder farmers
2022
Baseline rapid appraisal study of the AATIF investment in Vantage
2023
Feasibility study for local soybean processing in Benin
- Figures are based on latest available self-reported data by investees and data collected by AATIF’s collaboration partners
- Figures are subject to change as and when additional information becomes available
- Figures reported here are not replacing rapid appraisals / impact evaluations that are done in addition
