IFC, a member of the World Bank Group, and ARM Capital Partners, the manager of ARM Private Equity Fund, have announced a joint $9.5m equity investment in Boulos Foods and Beverages to support the expansion of a food and beverage processing plant in Ibadan, Oyo State, Nigeria.

The project will strengthen the agribusiness sector and improve food security and economic development in Nigeria.

German Vegarra, IFC Regional Industry Director, said: “One of IFC’s top priorities in Nigeria is supporting agribusiness, the largest single contributor to its GDP as well as its largest employer, especially in rural areas.”

“This important project will help showcase successful commercial food processing and should encourage further agribusiness investments that will create more jobs and grow Nigeria’s economy,” he said.

IFC’s $3.5m equity investment and ARM Capital’s $6m equity investment will help the expansion of the company, which currently produces fruit juices and other non-alcoholic drinks, milk products, and tomato paste for the Nigerian market.

Vlassis Liakouris, Managing Director, ARM Capital Partners, said: “We focus on providing expansion capital to high growth companies operating in attractive sectors of the economy. We are partnering with the founders of the Company and IFC to invest in Boulos Foods & Beverages with a view of helping the Company to become a world-class manufacturer of food and non-alcoholic beverages. We are pleased that our investment will result in substantial employment both for the Company and its supply chain.”

The project has created business opportunities and jobs by supporting various stakeholders across the value chain such as wholesalers, distributors and retailers who are primarily small or medium-size entrepreneurs.

According to Boulos Boulos, Managing Director and Founder of Boulos Foods & Beverages, the company is tapping into the huge potential of local food and beverage processing to help reduce food imports.  

“We aspire to attain a strong market position and become one of Nigeria’s leading food processing companies. Partnering with IFC and ARM Capital Partners will help us to create new markets and accelerate our growth. We, also, hope to eventually source most of our raw materials from small holder farmers,” he said.