In Nigeria, agribusiness plays a crucial role in adding value and diversifying the economy. Despite its potential, the cocoa sector—the third largest in West Africa—has yet to fully embrace processing. However, a significant development is underway.
Johnvents Industries Expands Cocoa Processing Capacity
Johnvents Industries Limited (JIL), a Nigerian agribusiness specializing in cocoa processing, has secured a $23.3 million loan agreement with the International Finance Corporation (IFC). This announcement, made on June 5th, marks a major milestone for the company and the industry.
Funding Breakdown and Impact
The funding comprises $8.5 million from IFC’s own account, $6.3 million from the World Bank Group’s Local Currency Facility (LCF), and the remainder from the Global Agriculture and Food Security Program’s (GAFSP) private sector window.
This investment will enable Johnvents to expand its factory in Ondo State and double its cocoa processing capacity to 120 tons per day. Furthermore, the company will replace its current diesel generators and wood-fired boilers with a new, efficient natural gas-powered system for electricity and heat generation.
John Alamu, CEO of Johnvents Group, emphasizes that this financial support aims to create added value within the cocoa sector and increase the company’s purchases of raw materials from its network of suppliers.
A Commitment to Sustainability
In 2022, Johnvents announced an ambitious sustainability program. Over the next 10 years, the company plans to support 150,000 farmers in planting 300,000 hectares of cocoa trees in Ondo State. This is significant, considering that only 10% of Nigeria’s average annual harvest of 250,000 tons of cocoa is currently processed domestically.
This investment in Johnvents Industries represents a major step forward for Nigeria’s cocoa industry. Increasing processing capacity, supporting farmers, and prioritizing sustainability will allow the company to make a lasting impact on the sector and the broader economy.