The unified exchange policy is already yielding investment results with a $12 million funding in the agricultural sector by Norfund- the Norwegian Investment Fund for developing countries.
Regional Director West Africa, Norfund, Naana Winful Fynn, said more capital flows should be expected into the country with fear of naira devaluation gone, and complexities around multiple exchange rates resolved.
She spoke yesterday during a virtual media parley in Lagos.
Fynn said foreign investors held back by macroeconomic challenges including multiple exchange rates no longer see naira devaluation fears is a challenge to investing in Nigeria.
She said the currency risks in the calculations of foreign investors have been removed by ongoing reforms in the forex market, including the collapse of multiple exchange rates into the Investors and Exporters (I&E) window.
She said more capital inflows are expected in the country as the currency rise impediment is resolved.
She said that through an investment of $12 million in OH Ecosystems Ltd, Norfund, aims to create jobs in Nigeria, while contributing to addressing some of the challenges in the cocoa value chain.
She said the cocoa sector is a very important one for Nigeria and West Africa and could be a key one in the push to diversify Nigeria’s revenue sources.
“By partnering with this management team which has deep sector experience in West Africa, a strong technical partner, local investors and current owners, we aim to contribute positively to this effort. This investment also presents us the opportunity to partner with these stakeholders to increase local processing of cocoa beans and thus capture more of the value chain dollars at origin, to create jobs and to positively impact the fight against child and forced labour and deforestation in this important value chain,” she said.
Norfund’s investment will upgrade FTN’s operating facilities and extend its reach to produce and sell additional products into the cocoa supply chain. Eco is supported by established leaders in the global cocoa chain including Niche Cocoa Industry Ltd, Africa’s largest indigenous cocoa processor, who will serve as technical partner.
Investment Manager at Norfund, Obafemi Awobokun, said: ” the increasing the share of raw materials that are processed locally can create a large number of jobs that give the fast-growing population of Nigeria the opportunity to work their way out of poverty, and we are confident that this investment can contribute to this”.
Norfund’s investment will help create both technical and non-technical employment directly for 600 people and indirectly for more than 1,500 across the cocoa value chain. The investment also contributes towards the Nigerian government’s efforts to diversify export revenues by reducing its reliance on oil and gas.
The cocoa sector faces challenges related to working conditions and the use of child labour, as well as environmental concerns. Norfund is committed to supporting companies that seek to operate in a sustainable manner, in sectors with challenging dynamics. As part of the partnership, Norfund will support Eco’s efforts in establishing a sustainable supply chain through its farmer empowerment programme dubbed ‘EcoWise’. The programme seeks to address farmer poverty, which is one of the root causes of child and forced labour in the cocoa value chain.
