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Press Release IFC Supports Rural Employment in Ethiopia with Investment in Afriflora
Washington DC, April 13, 2015— IFC, a member of the World Bank Group, will lend up to
€90 million to support Afriflora Group, a leading
large-scale rose grower and distributor based in Ethiopia that employs more
than 9,000 workers, more than 80 percent of them women. The funding will
support Afriflora’s plan to expand production by 60
percent, install water recycling systems, and increase employment by more
than 50 percent. Afriflora is founded and run by
the Barnhoorn family.
Agriculture provides almost half of Ethiopia’s economic output and employs 85
percent of its population, according to the World Bank. The floriculture
industry plays a major part in economic growth and poverty reduction. Afriflora cultivates, produces, and sells
sustainably-grown roses and has built a strong reputation for its fair-trade
approach and contributions to the local Ethiopian community where it
operates.
Peter Barnhoorn of Afriflora
said, “Afriflora is a leading employer in Ethiopia
and we are committed to expanding production in a way that adheres to global
standards for environmental and social sustainability. Our new
partnership with IFC will allow Afriflora to
transition to the next phase of our growth strategy.”
The Afriflora Group’s main growing facility is located
in Ziway, Ethiopia; where the company directly
supports about 30,000-40,000 people and more than 100,000 people receive
indirect benefits. IFC will work closely with Afriflora
to improve labor and working conditions, helping raise living standards for
the company’s employees and their families. Afriflora
also engages in a wide array of community development activities, including
operating schools from elementary to high school, a hospital and a football
stadium.
German Vegarra, IFC Head of Manufacturing,
Agribusiness, and Services in Africa said, “The horticulture industry holds
great potential for creating jobs, generating economic growth, and reducing
poverty. Ethiopia’s climate, land and water resources can make it a strong
competitor in the European market for cut flowers, and this investment will
help develop the logistics, cold storage and transport required to fulfill
this potential. With IFC”s support, Afriflora will
strengthen its labor conditions, ensuring a safe, healthy and productive
environment for its workforce in Ethiopia.”
Afriflora’s strong reputation and growth have
attracted the interest of global financiers. In June 2014, leading global
investment firm KKR became the largest stakeholder in Afriflora
with an equity investment designed to enhance and support the long-term
growth of the company. IFC’s loan complements KKR’s commitment, supporting Afriflora’s capacity expansion plans.
“Afriflora is a great example of a company that is
doing well whilst being a responsible and meaningful contributor to the local
community,” said Kayode Akinola,
a Director at KKR and the head of KKR’s efforts in Africa. “The partnership
with the IFC and their support with Afriflora’s
expansion will go a long way to further amplifying the company’s commitment
to sustainable development and its positive, local impact.”
Promoting agribusiness is a priority for IFC in Africa, due to agriculture’s
potential to create jobs, secure food supply and catalyze economic growth.
In its fiscal year ending June 2014, IFC invested $686 million in
agribusiness projects across Sub-Saharan Africa.
About IFC
IFC, a member of the World Bank
Group, is the largest global development institution focused exclusively on
the private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle the
most urgent challenges of development. For more information, visit www.ifc.org
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About Afriflora
Group
Afriflora Group, founded in 2004, is a family-run manufacturer and
marketer of cut-rose products with a large scale production farm based in
Ethiopia. The group’s main growing facility is located in Ziway, Ethiopia and is one of the largest single rose
growing facilities in the world. In 2014, US Private Equity Fund KKR
& Co., LP acquired a controlling stake in the group to support its global
expansion program. For more information, visit http://www.afriflora.nl/en/.
About KKR
KKR is a leading global investment
firm that manages investments across multiple asset classes including private
equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims
to generate attractive investment returns by following a patient and
disciplined investment approach, employing world-class people, and driving
growth and value creation at the asset level. KKR invests its own capital
alongside its partners' capital and brings opportunities to others through
its capital markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR &
Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com.
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