Signing of Private Sector Investment Finance (PSIF) Loan Agreement for the Agriculture Supply Chain Enhancement Project in Brazil: Contributing to sustainable agriculture development and world food security
On September 12, the Japan International Cooperation Agency (JICA) signed a $50-million loan agreement with Amaggi Exportação e Importação Ltda. (Amaggi) for the Agriculture Supply Chain Enhancement Project in Brazil.
Since the late 1970s, Brazil has become the second largest grain producer and exporter in the world by investing in technology and researches to turn the center of the country into a highly productive land in accordance with sustainability standards.. In order to meet the growing international demand for food and stay competitive in global agribusiness, the Government of Brazil has been further promoting agricultural development for crop cultivation. The public and private sectors of Japan support this national endeavor.
Amaggi, based in Mato Grosso State, Brazil, is a leading company in the fields of commodity trading, farming, origination and logistics. Upholding its commitment to contributing to the development of agribusiness, respecting the environment and improving people’s lives and their communities, the company plays an active role in global sustainable initiatives such as the UN Global Compact [1] and the Round Table on Responsible Soy [2].
Amaggi has been rapidly extending its business reach to the northeastern region of Mato Grosso State, through the development of a grain supply chain that connects to entrepreneurial farmers through a logistics and origination network. The JICA loan will be utilized for logistics investments, such as the construction of warehouses in the region and financing to farmers to support their agricultural activities. The project will advance sustainable agricultural development in this region and bring benefits to Japanese and global food security, thereby contributing to Sustainable Development Goal 2 [3].
The project is the first JICA private finance transaction co-financed with Citibank, N.A. JICA will continue to promote partnerships with private financial institutions and enterprises to create impact on socioeconomic development in developing countries.
1: The United Nations Global Compact (UNGC), launched in 2000, is a voluntary initiative in which enterprises and organizations engage in creative and responsible leadership to actively shape global frameworks to achieve sustainable growth. Amaggi joined the UNGC initiative in 2009 and coordinates the Food and Agriculture Working Group in the UNGC Network Brazil.
2: The Round Table on Responsible Soy (RTRS) is a civil organization comprising various stakeholders that promote the responsible production, processing and commercialization of soy. Amaggi is the first Brazilian company to be certified by the RTRS, and also sits on the Executive Board.
3: Sustainable Development Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
