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The International Finance Corporation (IFC) and FMO, the Dutch entrepreneurial development bank, today, announced a €3 million loan to United Exports Ltd, a South African fruit farming company, focusing on export of fruits such as blueberries, stone fruit, grapes with citrus, pears, and other berries.

In a statement sent to Financial Nigeria by IFC, the Washington D.C-based lender said the financing will support United Exports’ ongoing capital expenditure projects and help maintain local farmers’ access to markets and employment. The company employs around 3,800 permanent and seasonal workers.

IFC’s portion of the financing is €1.5 million, while the B loan of €1.5 million is from FMO. The IFC’s portion comes from its COVID-19 fast track facility, a global fund announced in March 2020 to support industries that are vital to job creation and economic growth. The lender said agriculture and agribusiness are important sources of jobs and export earnings in South Africa, which has been badly hit by the pandemic.

“With COVID-19 creating uncertainty across value chains and sectors, it’s now more critical than ever to support companies vital for job creation and growth, especially in the agribusiness sector,” said Adamou Labara, IFC’s country manager for South Africa.

According to Healthline, a US-based provider of medical and health information, blueberries are low in calories but high in nutrients. The fruit is an increasingly important product for the South African economy. The Western Cape Department of Agriculture said South Africa’s blueberry industry employs 5,700 people. Output of the fruit rose from 11,000 metric tonnes (mt) in 2018 to 18,000 mt in 2019/20, according to the South Africa Berry Producers Association.

“The blueberry industry is one of South Africa’s fastest growing agricultural sectors,” said Hans Bogaard, FMO’s Manager for Agriculture, Food & Water. “With this COVID-facility, we will help United Exports maintain local berry farmers’ access to markets and employment.”

The South African fruit farming company produces, packages and ships blueberries under its proprietary OZblu brand within South Africa and exports roughly 90 per cent of its output to overseas markets. The company said it plans to continue to expand the size of its orchards with their proprietary OZblu varieties in South Africa. In 2021, the company plans to add up to 150 new permanent jobs and roughly 1,250 seasonal jobs at the peak picking season.
 
“Despite the difficulties, we have continued our growth trajectory during the COVID-19 pandemic,” said Jon Salters, United Exports CEO. “The additional liquidity from the lenders will help us to continue with our capex investments and continue to create jobs and ensure we continue to deliver on our product quality objectives.”