November 26, 2013
International Finance Corporation may invest in animal feed production in Tajikistan
Together with the subsidiary of CCPA Group (Conseils et Competences en Productions Animales), the International Finance Corporation (IFC) plans to sign an investment deal on production of high-quality animal feed in Tajikistan.
Agrarian sector represents some 25% of Tajikistan''s gross domestic product and more than 70% of the population live in rural areas and derive the majority of their income from agriculture.
Agriculture in Tajikistan has a huge export potential and rational use of it could mitigate the acuteness of the employment and poverty problems in the country. The new project will be of great significance to production of animal feed in Tajikistan. The IFC Dushanbe Office says the deal is expected to be signed in Dushanbe on November 25.
According to IFC, the project is to establish a modern production of quality animal feed with initial capacity of approximately 30,000 tonnes per year. Investments will include modernisation, automation and capacity increase of an existing feed mill and raw materials storage facilities, which will be leased from Murghi Hilol JSC, a leading egg factory in Tajikistan. Initially it will be the major customer for Nutristar Tajikistan''s animal feed products. Over time client base is expected to increase as project will be targeting to supply a wider network of agricultural farms of Central Asia.
CCPA Group (Conseils et Competences en Productions Animales), a leading French agricultural cooperative that focuses on R&D in animal feed sector, will be its project sponsor. The Group produces variety of pre-mix, starter and nutritional supplements for key livestock segments.
Nutristar Tajikistan LLC was established in Tajikistan in May 2012. Sponsor owns 99% in the Project Company; the remaining 1% is owned by Tajik citizen, General Manager of the Company. Total project cost is estimated at US$2.6 million.The proposed IFC investment is a senior loan of up to US$2.2 million for IFC''s own account.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, it uses its capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. IFC works with private sector clients, government, and civil society to bring the benefit of global expertise to Tajikistan through its advisory services and selected investment projects. IFC, with its focus on private sector development, has an important role to play in supporting inclusive growth and job creation in Tajikistan.