Closing of USD 25m Funding Line with Union Bank of Nigeria
In October 2022, Samawati Capital Partners supported the Africa Agriculture and Trade Investment Fund in closing a USD 25m funding line with Union Bank of Nigeria to expand its agricultural business footprint. In response to the Nigerian government’s effort to reduce food imports and ultimately create a sustainable market for local farmers to sell their farm produce, Union Bank has anchored its food and agri-finance strategy around the promotion of local food processing.
Union Bank boasts a long-standing track record in the agricultural sector and has since risen to become one of the top 5 agricultural financiers in Nigeria, highlighting the sector's great potential for future expansion and innovation.
The bank targets key value chains in rice, poultry, dairy, cassava, maize, and soybean, among others, and aims to provide tailor-made funding and technical support to the different actors along each of the selected value chains.
The funding from AATIF will support Union Bank’s expansion and outreach to Nigerian agri-businesses. The expected impact is linked to the development and deployment of innovative agri-product offerings and an increase in funding directed to agricultural businesses. This is expected to further contribute to the growth of the competitive food and agricultural sector in Nigeria that is fully aligned with national priorities including improved food security, increased agricultural production, and local food processing.
AATIF’s facility will also be accompanied by technical assistance support to improve efficiency and accelerate impact within the sector.