(Ecofin Agency) - British agribusiness investor, AgDevCo, has announced a $1.5mln investment in Malawian groundnut processor, Afri-Oils. The investor’s move falls in line with Afri-Oils’ vision to revive Malawi’s peanut export industry.

The financing will be used to build a factory that will process locally produced nuts, train farmers and develop improved handling and sorting methods. The project aims not only to show that Malawi can meet international quality standards, but it should also boost revenues of 18,000 small peanut farmers.

“Afri-Oils aims to be a profitable enterprise that improves the lives of its farmer suppliers, and contributes to systemic improvements in the groundnut industry in Malawi,” said Afri-Oils Chairman Tim Borde explaining the reason behind the project. Meanwhile, Jim Henderson, AgDevCo Malawi’s Associate Director said his firm wished “to put Malawi back on the map as a major international peanut producer”. Indeed, before the 1990s, the country used to export more than 50,000 tons of groundnuts but the industry crashed after the introduction of stricter quality standards.

AgDevCo currently operates in five sub-Saharan countries (Mozambique, Ghana, Zambia, Malawi and Tanzania) and has invested more than $76 million in the region. Through its investments, the agribusiness developer aims to reduce poverty by boosting agricultural productivity, creating jobs and increasing farmers’ revenues in rural areas.

Schadrac Akinocho