IFC Grants $150 Million USD Loan to Yara International for Fertilizer Projects in Colombia, Brazil, and Zambia
The International Finance Corporation (IFC), a member of the World Bank Group, has granted a $150 million USD loan to Oslo-based Yara International to support fertilizer projects in Colombia, Brazil, and Zambia. The funds will go toward upgrading and acquiring fertilizer production facilities in the African nation and improving fertilizer production, warehousing, and distribution in Colombia and Brazil, according to the IFC.
To help ensure that the investment leads to real-world efficiency improvements, Yara International will train farmers in “precision farming techniques” that help reduce water use and carbon emissions. Both stakeholders expect this initiative to make fertilizers available at lower prices in the local markets, strengthen the competitiveness of for area farmers, and generally enhance food production.
“Meeting food demand for a growing global population with limited land and water resources requires access to high-quality fertilizers and focused work to improve resource efficiency,” said Torgeir Kvidal, chief financial officer of Yara International. “Improving access to value-added crop nutrition solutions is an effective way for Yara to contribute to improving global food security, while at the same time reducing the climate footprint of agriculture.”
Sergio Pimenta, IFC’s director for manufacturing, agribusiness, and services, says that he expects this investment to lead to more jobs in Colombia while also providing environmental benefits. “This investment is in line with IFC’s strategic priorities in the Latin America and African regions” said Pimenta. “It will support increased availability of higher-quality fertilizers at more affordable cost, support ‘climate-smart’ farming and create jobs in Brazil, Colombia, and Zambia.”