At the sidelines of COP29, Jospong Group of Companies has revealed plans to secure $400 million in funding from the African Export-Import Bank (Afrexim Bank) for a comprehensive waste management project in Lagos State- Nigeria and its rice project in Ghana.
The project, which includes building nine plants, aims to turn waste into recyclable materials, fertilizers, and other valuable products. Jospin Group is also investing in transfer stations and augmenting waste collection services in Lagos.
Speaking to the press shortly after the meeting, Jospong Group’s Chief Investment Officer, Noah Gyimah, emphasized that, the Group needed to have a broader conversation with the bank to ensure that at least they will be able to support JGC’s investment efforts in other countries.
The interesting part of that conversation was also the other menu of options that they have, including supporting research and development efforts, which include feasibility studies and others that they have funding for at a very accommodating rate to allow for feasibility studies to be done, whether commercial or technical, as a way of front-loading their involvement in any project,” he noted.
Jospong Group is expanding its operations across Africa, with advanced discussions underway in Nigeria, Uganda, and Kenya. The company aims to replicate its successful waste management model in these markets.
As part of the financing arrangement with Afrexim bank, JGC plans to source additional USD50m for its rice project in Ghana.
The exciting part also is that they are not only looking at just what we are doing from waste management perspective, but they expressed great interest in food security. And this was a great opportunity for us to discuss options that are available for funding our rice production business,” he stated.
According to Gyimah, there is a need for a broader conversation with the leadership of Afrexim bank, as well as prioritize key projects for consideration, stating the stages of the projects, and then have further meetings to be able to see what opportunities that could work for both.
Asian African Consortium rice project
Jospong Group, through it subsidiary the Asian African Consortium, is scaling up Ghana’s rice industry by investing in high-quality seeds, modern production technologies, and training for smallholder farmers. The goal is to replace the increasing quantities of imported rice.
Rice consumption in Ghana has nearly tripled in the past decade, with individuals consuming approximately 45 kilograms per year.
The country has an urgent need to produce rice locally to reduce the financial strain caused by rising imports and foreign exchange demand.
In 2023, the Asian African Consortium partnered with major players in the rice industry in Thailand and Ghana to develop an integrated rice farming project. This initiative aligns with the government’s objective of boosting the economy through import substitution.
Ghana has spent over ¢6.8 billion (equivalent to $560 million) on rice imports, despite the potential for local production. The partnership between Jospong Group and IRRI aims to address this issue and foster self-sufficiency in rice production.
Partnership with Afrexim Bank
The partnership with Afrexim Bank is strategic, offering Jospin Group access to advisory services and funding at competitive rates. The bank’s expertise will help fast-track the lending process and support Jospin Group’s growth plans.
Source: Kofi Ahovi, Baku- Azerbaijan
Courtesy Jospong Group of Companies