Project Description
Robust International is a Singapore-based midscale agri-commodities trader. In Nigeria, Robust sources 40 percent of the commodities (Sesame, Cashew, Ginger, Gum Arabic, Pulses, Turmeric and Shea nuts) directly from 44,000 farmers and 60 percent from 40 Licensed Buying Agents, carries out primary processing (i.e., fumigation, sorting and hulling) before selling to consumers in China (53 percent), Vietnam (37 percent), Turkey (6 percent) and India (4 percent). Sesame accounts for 55 percent of Robust's operations. An IFC investment loan of $18M to Robust (Project #: 45225) supports its $26M capacity expansion program (including the construction of an integrated warehouse complex that has added 30,000 MT capacity to cater for drying and processing of sesame) and allows the company to increase direct sourcing from farmers by 20 percent.
An IFC Advisory Services project will help reduce the operational risks of the investment by (i)Training sesame farmers on Good Agricultural Practices (GAP) focusing on soil & water management technologies, and integrated pest management (IPM) practices, (ii) Building the capacities of license buying agents in record keeping and product traceability, and (iii) Exploring linking farmers to sources of good quality sesame seeds. The project will be implemented in two phases based on an incremental approach to ensure early wins and assess traction, as well as take into account learning that will inform later roll-out decisions. In Phase I, the project will be piloted in Kano State before rolling out into Bauchi and Jigawa States in Phase II.