The International Finance Corporation (IFC) and the Global Agriculture and Food Security Program will extend an $11-million loan to Ugandan agribusiness company Grainpulse to support its expansion and strengthen its farmer supply chain, increasing food production and economic growth in the country.
The investment will help Grainpulse expand to become a one-stop-shop for farmers, providing them with multiple services, such as fertiliser blending.
The company’s fertilisers are optimised to increase the yields of crops grown by Ugandan smallholder farmers. Grainpulse also buys these crops, including coffee, maize and barley from local farmers.
“Our partnership with the IFC will help Grainpulse move to the next stage of growth. We chose to work with the IFC because it takes a long-term view of our partnership and adds value beyond financing, in areas such as farmer linkages. We are aligned with the IFC on our goal of supporting Ugandan farmers,” Grainpulse founder and CEO Hannington Karuhanga says.
The IFC will also help Grainpulse launch an online platform that will enable farmers to easily access information on best practices, as well as provide training for agro-input dealers and retailers on financial management to help them expand and secure access to finance.
Grainpulse expects that its IFC-supported expansion will increase its reach from 36 000 farmers to more than 300 000 by June 2023.
“Supporting the agribusiness sector is a major focus for the IFC in Africa. This investment in Grainpulse will contribute to food security and economic growth in Uganda by helping increase farmers’ fertiliser use and improving their access to markets,” comments IFC manufacturing, agribusiness and services senior director Tomasz Telma.