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The International Finance Corporation has approved a €3 million loan financing in Frutas & Legumes, vertically integrated producer and exporter of cashew nuts and mangoes in Guinea-Bissau. The loan marks IFC’s first agribusiness investment in Guinea Bissau in over two decades, according to a statement on Wednesday.

The Washington D.C.-based multilateral lender said Frutas & Legumes will use the financing to expand its production of organic fruits and vegetables export to European markets.

Frutas & Legumes will also start sourcing from additional small-scale farmers to complement supplies of crops from its own farms, and build out its agro-processing infrastructure. The company plans to pilot new crops such as lime and avocado, which are in demand for export markets.

“IFC’s investment in Frutas & Legumes will boost the local production of fruits and diversify the country’s agricultural base,” said Faheen Allibhoy, IFC’s Country Manager for Guinea Bissau.

“It will also benefit the entire value chain, from growers to entrepreneurs who provide processing, packaging and transport facilities. Frutas & Legumes links local farmers to global markets, which is critical for economic development in countries like Guinea Bissau.”   

The cashew sector represents 90 percent of Guinea-Bissau’s export revenues. The crop is cultivated by 55 percent of Guinea-Bissau’s rural households and account for over half their income. Frutas & Legumes account for a significant part of the West African country.

Established in 2014, Frutas & Legumes is owned by Spanish families and is Guinea Bissau’s first “organic” or “bio” certified cashew and fruits exporter.

“IFC’s investment will allow us to expand and diversify our organic products to become more competitive on export markets,” said Cristóbal Sánchez Fornieles, Founder of Frutas e Legumes. “It also opens up new horizons for the farmers from whom we source around half of our produce.”

Part of IFC’s investment will be provided through the Global Agriculture and Food Security Program. Donor partners to the programme are the governments of Canada, Japan, the Netherlands, the U.K. and the U.S.

IFC’s support for Frutas & Legumes reflects the Corporation’s deepening commitment to Africa’s fragile and conflict affected situations. Over the past five years, IFC has invested over $1 billion in fragile and post-conflict countries in sub Saharan Africa.