The United States Agency for International Development (USAID) has awarded a grant of N592 million to a Nigerian firm, LoftyInc Allied Partners Limited, to boost investment in agriculture.
Michael Oluwagbemi, Executive Partner of LoftyInc made this known in a statement on Monday.
Oluwagbemi stated that the money is a co-investment grant by the USAID-funded West Africa Trade and Investment Hub (Trade Hub).
He said that the grant would be used to launch “Project Sparrow,” an initiative developed to reduce the risk of local and global investments in selected agribusiness and agritech companies in Nigeria.
He added that it would help the selected companies achieve higher productivity, better returns, inclusive growth and access to finance.
“Through assistance provided to these companies, Project Sparrow will achieve its overall goal of supporting the improvement of Nigerian smallholder farmers’ productivity and livelihoods in the U.S. Government’s “Feed the Future States” and select value chains.
“Project Sparrow is expected to positively impact over 50 direct beneficiaries and a total of 25,000 smallholder farmers while creating 4,000 jobs,” he said.
Oluwagbemi added that in celebration of the project and its expected outcomes, LoftyInc had hosted a kick-off launch for the project in Abuja.
“The event brought together all stakeholders and leaders of agribusinesses in Nigeria, and staff representing financial institutions and other businesses that will support Project Sparrow.
“They include the Development Bank of Nigeria, the Nigeria Sovereign Wealth Investment Authority, the First City Monument Bank Plc, and Afrilabs,” he said.
He assured that LoftyInc was an innovation development company that supports start-up teams, innovation enterprises and social impact projects in Africa.
“The organisation is on a mission to contribute to the enhancement of lives by creatively investing in ideas and entrepreneurs, while positively changing the broader society.
“Access to funding has always posed a major challenge to innovative agric-focused start-ups and MSMEs in the country.
“The need to provide a solution to this challenge led to LoftyInc’s foray into innovation acceleration, angel investment, and venture capital, as well as microfinancing that provides various kinds of funding to novel business solutions covering various sectors of the economy,” he said.
The executive partner said that Project Sparrow would provide incremental financing of 6.5 million dollars to more than 20 MSMEs, most of which will be women or youth-led.
He added that such support would make them better prepared for external funding.
Meanwhile, Robin Wheeler, the Trade Hub’s Chief of Party, said he looked forward to seeing the long-term impact Project Sparrow will have in Nigeria.
“The Trade Hub and LotfyInc share the common goal of supporting small and medium-sized businesses to be drivers of economic growth in Nigeria.
“Project Sparrow represents an innovative and strategic way to accomplish this goal through not only giving high-potential companies much-needed access to finance, but the technical assistance and training needed to succeed as well. We are proud to support this project,” he said.
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The Trade Hub is a USAID-funded initiative.
It was designed to catalyse economic growth by co-investing with the private sector to generate new investment, create new jobs, and increase the value of regional and international exports in West Africa.
