Boosting Nigerian Agribusiness: US Government Pledges $205 Million Investment
The United States Government, in collaboration with the U.S. Agency for International Development, has successfully orchestrated $205 million in debt and equity investments for Nigerian agribusinesses over the past five years. This significant initiative was disclosed during the announcement of the USAID-funded West Africa Trade and Investment Hub workshop, themed ‘Leveraging Private Sector Engagement to Promote Sustainable Impact,’ set to kick off.
The two-day event will spotlight the Trade Hub’s endeavors in broadening trade and investment prospects, ultimately elevating livelihoods and fortifying communities in West Africa. Nigeria, with its vast reservoir of untapped labor, stands poised for substantial economic growth. The nation harbors an exceptional opportunity to emerge as a pivotal exporter and hub within the West Africa region and the continent at large.
Over the past half-decade, USAID has been a pivotal force in nurturing private sector-led economic growth within Nigeria, facilitating $205 million in debt and equity investments for local agribusinesses. Additionally, USAID has extended partial risk guarantees, backing up to $120 million in loans targeted at agricultural, health, and renewable energy enterprises.
The Trade Hub, employing a market-centric approach, aims to enhance private sector competitiveness, focusing on augmenting the productivity and profitability of smallholder farmers in Nigeria while propelling West Africa’s regional and international trade. This project also fosters partnerships with firms across diverse sectors through a co-investment grant facility, aiming to elevate private sector productivity, profitability, and competitiveness.
Sara Werth, Acting Mission Director at USAID, expressed, “Together, with our private sector partners and local and national governments throughout the region, we are so proud of the results we have achieved till date. As we continue to partner in the work necessary for sustainable economic growth, financial inclusion, and climate resilience, today’s learning event provides the environment to fuel continued collaboration and build new connections.”
Since its inception in 2019, the hub has been instrumental in catalyzing 93 private-sector investments spanning 16 West African nations. Additionally, the hub has allocated $82.6 million in co-investment grants to partner companies, yielding over $463 million in sales and creating over 60,000 job opportunities, contributing significantly to the region’s economic vitality.
Source: Msmeafricaonline.com