LONDON, June 19, 2017 /PRNewswire/ --
On 28 April 2017, RMG Concept Ltd ("RMG"), a leading West African agribusiness group, completed the purchase of 70% of the shares of the Babator Farming Company Ltd ("BFC") for a total investment of $1.75m.
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BFC is a 356 ha (net) irrigated farming company established by AgDevCo Ghana Ltd ("AgDevCo") as the first phase of the Babator Irrigated Farming concession - which is expected to be the largest block of irrigated land in Northern Ghana (5,000 ha).
AgDevCo's early work at BFC has demonstrated the commercial viability of the project and its establishment has already delivered development benefits to the area: 85 permanent jobs have been created in a rural environment where little formal employment exists. Farming operations started in early 2017 and by the end of the year, the equivalent of 2,000 MT of cereals (maize, sorghum, grain and seed) and 4,000 MT of onions will have been produced for the local market, improving food security.
RMG is a natural partner for AgDevCo and for the Babator project. In Ghana, RMG is a leading inputs provider and commodities trader, especially through its subsidiaries Wienco Ghana Limited and RMG Ghana Ltd. In West and Central Africa, RMG operates in 17 countries, with physical assets in six of those, and with distribution contracts with leading agro-inputs producers and seed companies in many of these countries.
As well as being in partnership with RMG, AgDevCo retains responsibility for the development of more commercial farming companies on the Babator Irrigated Farming concession. It also remains the lessee with the traditional authorities.
Daniel Hulls, CEO of AgDevCo said: "RMG's investment is an important milestone for AgDevCo, being the first commercial partnership at Babator and with one of the leading agribusiness in the country. We look forward to working with RMG and benefitting from their expertise, supply chains and market access."
Daniel Ruegg, CEO of RMG Concept Ltd said: "Babator is a new key investment for the support of our strategy and we are proud of this important partnership with AgDevCo. We continue our vertical integration, from the field to the consumer, by developing nucleus farms, small-scale farmer schemes and transformation units. Our commitment is to increase the local production of high quality seeds and food crops."
AgDevCo is a British social impact investor and agribusiness project developer, focused exclusively on Sub-Saharan Africa. With funding from UKAid, AgDevCo invests patient capital in the form of debt and equity into early-stage agribusinesses. AgDevCo's mission is to reduce poverty and improve food security, and it has invested over USD 98 million in 56 agribusinesses in sub-Saharan Africa to date, connecting over 240,000 farmers to markets and generating over 7,800 jobs. For more information, visit http://www.agdevco.com.