«Agriculture is the backbone and strength of the country's wealth. Industry is convenience.»
FONSIS' investments in Agro-industry are a model of innovative investment. This is a critical sector that Senegal is striving to master more efficiently. Indeed, the country has implemented a series of investment-friendly reforms, in addition to the substantial part of the national budget allocated to this sector, which has a great potential, especially in the North and South areas. FONSIS contributes through co-investments with the private sector (DB Foods, Biosoy) or public private partnerships (Agropole Sud).
Due to the geographical position of Senegal (Sahelo-Saharan), the country remains exposed to climatic impacts and is seeking to preserve its environmental capital. Thus, FONSIS has set up funds, including the Fonds PME Nord-Agri, with the Société Nationale d'Aménagement et d'Exploitation des Terres du Delta du fleuve Sénégal et des vallées du fleuve Sénégal et de la Falémé (SAED) as technical partner. Other SME funds, whether sectoral or thematic, have been set up to support the acceleration of the sector's industrialization,. (www.fonsis.org/fr/fonds-pme-agri-nord-un-fonds-pour-les-pme-de-services-agricoles-dans-la-vallee).
DB Foods is a senegalese SME financed through PME Nord Agri Fund.
Set up in 2017, DB Foods is an agri-food start-up located in Diama Municipality, in the Senegal River Valley.It specializes in collecting, processing and marketing rice.
In compliance with one of its core missions, FONSIS supported the company through financial structuring, operational monitoring and institutional support alongside other financial partners and state-owned instruments such as DER ( Délégation rapide à l’Entreprenariat) DB Foods aims to develop an inclusive economic model that is more responsive to the specifics of our economy.
For that purpose, the enterprise has decided to set up a high-performance industrial unit nearby production areas that will be able to provide farmers with sustainable opportunities. Therefore, an entire value chain has been structured and the networking of the stakeholders resulted in the improvement of the conditions of their activities and the increase in their incomes.
The investment of the Fonds PME Nord-Agri (FCFA 200 million) aside the subsequent support in raising funds allowed the company to mobilize additional financing from DER and other financial partners. As a result, it was able to set up a unit with an annual processing capacity of nearly 10,000 tons of high-quality white rice for the Senegalese market, as a substitute for imported rice.
The rice is sold under the brand Tiep Bi (https://www.tiepbi.com/). In addition to processing paddy and marketing Tiep bi and white rice by-products (bran and rice straw), DB Foods also offers color sorting services to third parties to reduce impurities in white rice. Thereby, DB Foods meets a much awaited need, as such service is lacking in the Senegal River Valley As of 2019, DB Foods has achieved a turnover of over FCFA 100 million, only three months after the start of the business. With a network of over 200 producers, the company is a major contributor in job creation. As a result, it has generated, in 2019, 1,200 direct and indirect agricultural jobs; thus contributing to scaling up the local economy.
This is a 2400 ha pivot-irrigated agriculture project and the first agricultural project carried out by FONSIS. It consists in producing a high value-added crop near the Guiers Lake in Syer municipality (Louga Region).
A first pilot phase of 100 Ha was launched in 2017 and produced sorghum fodder. In the second phase, the target is to have a 1000 Ha farm for the production of seeds, cereals and fodder for livestock feed.
The project will foster the development of the local economic fabric through:
- the development of husbandry (Biosoy purchasing manure and organic matter, making available water supply and access corridors to the lake, providing services to breeders, …)
- the construction of infrastructures by the project: laterite roads, water, electricity, etc.).
SECAS is a FONSIS subsidiary that aims to develop and relocate the activities of LA VIVRIERE (http://www.lavivriere.com/), a Senegalese SME specializing in the processing and marketing of local cereals.
FONSIS and Teranga Capital, a FONSIS deal, have closed an investment of more than CFA francs 500 million in LA VIVRIERE SUARL. This investment of half a billion CFA Francs led by SECAS, will finance the relocation of the commercial, administrative and operational premises of LA VIVRIERE as well as the acquisition of industrial equipment in order to increase the production capacities of the brand.
This project is in line with the 2023 target of the Plan for an Emerging Senegal (PSE), to substitute 30% to 50% of imported wheat consumption with local cereals by developing corridors and fostering the emergence of processing opportunities for these products. Moreover, the project contributes to structure the millet whole-chain in Senegal and to absorb the local cereal production, in addition to its job creation potential, especially for women.