IFC Invests $30 Million in Pran Dairy and Habiganj Agro to Support Bangladesh's Food Industry
Source: The DairyNews
The International Finance Corporation (IFC) has announced a $30 million investment in Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL), both subsidiaries of the PRAN Group, a leading player in Bangladesh's food and beverage (F&B) industry. This investment aims to support businesses severely impacted by challenges such as reliance on imports for raw materials.
The primary objectives of the investment are to enhance the resilience of the food processing market, create job opportunities, promote gender diversity, and bolster the economy. It marks the first utilization of IFC's USD term loans for working capital purposes in Bangladesh. The funding will enable PDL and HAL to sustain their operations, boost exports, and preserve over 30,000 jobs.
Additionally, the IFC will collaborate with PRAN Group to enhance the participation of women and promote inclusivity in the workplace through relevant policies and practices. The F&B sector plays a crucial role in Bangladesh's economy, contributing approximately 13 percent of manufacturing production value and employing 19 percent of the industrial manufacturing workforce.
However, challenges such as foreign exchange scarcity, high energy prices, and power shortages have disrupted raw material imports and limited local banks' lending capacity. In response, IFC's longer-term US dollar financing aims to enhance foreign exchange access, assisting Bangladeshi companies in navigating the crisis.
Uzma Chowdhury, Director (Finance) of PRAN-RFL Group, emphasized the importance of regular access to US dollars for import-dependent businesses. The scarce availability of USD funds for working capital has posed challenges, and IFC's support will ensure the stability of operations and contribute to economic stability.
As part of its advisory services, IFC will assist PRAN Group in developing smallholder sourcing supply chains and exploring opportunities for decarbonizing agro-processing operations.
Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan, and Nepal, reiterated IFC's commitment to supporting clients during crises. He highlighted the investment's potential to alleviate foreign exchange access constraints, foster private sector growth, enhance food security, diversify export bases, and create job opportunities in Bangladesh.
IFC's investment underscores its ongoing efforts to promote private sector development in Bangladesh, with over $3.8 billion invested since 2010.
Additionally, the IFC will collaborate with PRAN Group to enhance the participation of women and promote inclusivity in the workplace through relevant policies and practices. The F&B sector plays a crucial role in Bangladesh's economy, contributing approximately 13 percent of manufacturing production value and employing 19 percent of the industrial manufacturing workforce.
However, challenges such as foreign exchange scarcity, high energy prices, and power shortages have disrupted raw material imports and limited local banks' lending capacity. In response, IFC's longer-term US dollar financing aims to enhance foreign exchange access, assisting Bangladeshi companies in navigating the crisis.
Uzma Chowdhury, Director (Finance) of PRAN-RFL Group, emphasized the importance of regular access to US dollars for import-dependent businesses. The scarce availability of USD funds for working capital has posed challenges, and IFC's support will ensure the stability of operations and contribute to economic stability.
As part of its advisory services, IFC will assist PRAN Group in developing smallholder sourcing supply chains and exploring opportunities for decarbonizing agro-processing operations.
Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan, and Nepal, reiterated IFC's commitment to supporting clients during crises. He highlighted the investment's potential to alleviate foreign exchange access constraints, foster private sector growth, enhance food security, diversify export bases, and create job opportunities in Bangladesh.
IFC's investment underscores its ongoing efforts to promote private sector development in Bangladesh, with over $3.8 billion invested since 2010.
