AATIF invests EUR 20m in Phoenix Commodities Pvt Ltd (“Phoenix”), an integrated food / agri-business group of companies.
On 6th September 2019, AATIF disbursed a EUR 20m loan to Phoenix for the export of cashew nuts from Ivory Coast.
Phoenix is a global food and agri business operating across the value chain in production, procurement, processing, trading and distribution across five continents. Its activities are managed through 25+ offices that connect over 70 origin and destination markets. Its 2,500+ strong team manages 45+ supply chain assets and facilitates the production and / or trade of 12m+ MT of essential commodities and goods, supplying over 4,000 customers worldwide.
Phoenix has been active in Africa since 2002, operating in 22 countries mainly focusing on the import of foods to date. Since last year the company has strategically started to expand its Africa operations by setting up / acquiring farming entities, developing plans to invest in processing units and finally increasing its export activities out of Africa focusing on cashew, beans and pulses.
AATIF’s EUR 20m loan with a tenor of 4 years will be used for the purchasing and export of cashew nuts from Côte d'Ivoire. With the country being the world’s largest producer of cashew nuts, increased exports will benefit not only the larger economy, but those working across this agricultural value chain. Phoenix’s plans to invest in processing units in the continent for different commodities once fully running, will also have the effect of ensuring more value remains on the continent by minimizing the export of raw commodities.
“We are pleased to have Phoenix join the AATIF portfolio, expanding our activities in trade finance and supporting Phoenix in expanding their export activities out of Africa. We look forward to growing the relationship over the four years and also exploring how further impact can be achieved with the farmers at the beginning of the value chain who supply the cashews to Phoenix.”
The Africa Agriculture and Trade Investment Fund (AATIF)
AATIF is a public private partnership dedicated to promote the food / agri sector across Africa 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 as well as financial institutions active in the sector. Ticket sizes range from USD 3.5m up to USD 30m per project with a possible maximum tenor of 12 years.