Jospong Group eyes $400M Afrexim Bank funding for Africa projects

At COP29, Jospong Group of Companies (JGC) announced its intention to secure $400 million in funding from the African Export-Import Bank (Afrexim Bank) to support large-scale waste management and rice production initiatives in Lagos, Nigeria, and Ghana.

The waste management project will involve the construction of nine plants focused on converting waste into recyclable materials, fertilizers, and other valuable products. Additionally, Jospong Group is expanding waste collection services and building transfer stations in Lagos.

Noah Gyimah, Jospong Group’s Chief Investment Officer, highlighted the importance of deeper discussions with Afrexim Bank to advance the company’s investments across Africa.

“What stood out in our talks was Afrexim Bank’s diverse offerings, including research and development funding for feasibility studies at favorable rates,” Gyimah said.

The Group is expanding its operations across Africa, with ongoing talks in Nigeria, Uganda, and Kenya to replicate its successful waste management model in those markets.

As part of the funding arrangement, JGC is also seeking an additional $50 million for its rice production project in Ghana.

“They showed a strong interest in food security and the funding options available for our rice production business,” Gyimah added.

Gyimah stressed the importance of continued engagement with Afrexim Bank’s leadership to prioritize key projects, define project phases, and explore further collaboration opportunities.

Jospong Group’s subsidiary, the Asian African Consortium, is working to transform Ghana’s rice industry by investing in improved seed varieties, modern production techniques, and farmer training. The goal is to reduce Ghana’s reliance on imported rice, as domestic consumption has nearly tripled in the past decade, reaching around 45 kilograms per person annually.

In 2023, the Asian African Consortium formed a partnership with key rice industry stakeholders in Thailand and Ghana to establish an integrated rice farming initiative aligned with the government’s import substitution strategy. Despite its agricultural potential, Ghana spent over ¢6.8 billion (approximately $560 million) on rice imports last year.

Jospong Group’s partnership with the International Rice Research Institute (IRRI) aims to help address this gap and support the country’s drive toward rice self-sufficiency.

Partnership with Afrexim Bank

Through its collaboration with Afrexim Bank, Jospong Group gains access to valuable advisory services and financing at competitive rates. Afrexim Bank’s expertise will help accelerate the funding process and contribute to Jospong Group’s growth objectives.

This strategic partnership will play a key role in driving sustainable development and fostering economic growth across Africa.