GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has provided a 100 per cent credit guarantee to support a 75-million-dollar debt facility for Robust International Pte Ltd to build a major cashew nut processing plant in Ogun State, Nigeria.
The investment is expected to significantly expand local processing capacity in a country that produces between 250,000 and 300,000 tonnes of raw cashew nuts annually but processes less than 10 per cent domestically. Most of the crop is exported unprocessed, a situation experts say denies Nigeria up to 80 per cent of potential export earnings while exposing farmers and exporters to foreign exchange volatility.
According to GuarantCo, the new facility will more than double Robust’s processing capacity from 100 metric tonnes per day to 220 metric tonnes, helping to bridge the structural gap in Nigeria’s agro-processing value chain.
British Deputy High Commissioner to Nigeria, Jonny Baxter, described the project as a strategic boost to Nigeria’s productive economy.
“The UK is proud to support innovative financing that mobilises private capital into Nigeria’s productive economy through UK-backed institutions such as PIDG. By backing investment into local processing and value addition, this transaction supports jobs, exports and more resilient agricultural supply chains,” Baxter said.
He added that the initiative complements the UK-Nigeria Enhanced Trade and Investment Partnerships and the Developing Countries Trading Scheme, which aim to help Nigerian businesses scale exports to global markets.
The project is projected to create up to 900 direct jobs, with women expected to occupy about 78 per cent of the positions. Robust International also plans to raise procurement from women farmers from 15 per cent to 25 per cent by 2028 through a gender-responsive outreach programme.
GuarantCo noted that the plant would source raw cashew nuts from about 10,000 smallholder farmers, many of them low-income earners, generating an estimated 335 million dollars in export revenue over the lifespan of the guarantee.
To strengthen environmental sustainability, the facility will incorporate technology to convert waste by-products into biomass and biofuel inputs.
Head of Africa and Middle East Investments at GuarantCo, Dave Chalila, said the deal demonstrates the power of structured finance in unlocking capital for high-impact sectors.
“This transaction is consistent with PIDG’s mandate to mobilise private capital into high-impact, underfinanced sectors. We are crowding in institutional investors to the African agri-processing value chain and accelerating socio-economic development where it matters most,” Chalila stated.
The debt facility was arranged through a Symbiotics bond platform, with the notes fully subscribed by M&G Investments and benefiting from GuarantCo’s guarantee and external Fitch rating.
Group Executive Director of Robust International, Vishanth Narayan, said the project aligns with the company’s long-term strategy.
“This transaction represents an important step in advancing our strategy of strengthening processing capabilities, deepening engagement with farmers and enhancing local value addition in the regions where we operate,” Narayan noted.
Director at M&G Investments, María Redondo, added: “Smart credit enhancement can unlock institutional capital for high-impact development and manage currency and credit risks effectively. This is another strong step in channelling institutional capital into meaningful, on-the-ground growth.”
Symbiotics’ Structuring and Arranging executive, Valeria Berzunza, said the collaboration highlights how well-designed financial products can deliver both commercial and social impact, particularly with a strong gender focus.
The project aligns with the United Nations Sustainable Development Goals 2 and 9, targeting zero hunger and industrial innovation.
PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden and Canada.
