AFC to Provide $200 Million for BUA’s Integrated Sugar Project

0
1821

• Project will boost Nigeria’s self-sufficiency in sugar – key to developing FMCG sector

Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, has approved a US$200 million corporate facility for BUA Industries Limited, a member of the BUA Group (BUA), to complete its vertically integrated sugar facility in Lafiagi, Kwara State, Nigeria.

The proceeds will be utilised for the development, construction, commissioning and operations of a 20,000 hectares plantation, 2,200,000 tons sugar milling plant and a 200,000 tons per annum sugar refinery that will process and refine white sugar. The facility will also have an ethanol plant that should produce 25 million litres of ethanol annually and a 35-megawatt power plant that will produce renewable energy from bagasse – sugarcane residue (the Lafiagi Sugar Project or the Project).

The Project will enable the export of excess energy not consumed on site to the national grid and will recycle most of its waste products from bagasse, effluents and vinasse for energy production, irrigation, and fertiliser production.

Underpinned by a focus on its import substitution and vertical integration strategy, the Project will enable BUA Group – a leading food, infrastructure, mining, and manufacturing conglomerate – to ensure long-term self-sufficiency for its sugar operations. The Group’s strategy is also in line with the Federal Government of Nigeria’s Sugar Master Plan which emphasizes backward integration programmes for self-sufficiency in sugar production.

Samaila Zubairu, President & CEO of AFC said, “We are pleased to support this landmark project which will significantly reduce Nigeria’s sugar import bills, currently estimated at over US$400 million per annum. The Project should over its useful life reduce Nigeria’s sugar import bills by approximately US$2B and create about 15,000 direct and indirect jobs that will accelerate development impact in the economy.”

Abdul Samad Rabiu, Founder and Executive Chairman of BUA, said, “We are pleased to partner with Africa Finance Corporation – a leading multilateral finance institution focused on Africa’s infrastructure and industrial development, on our Lafiagi Sugar Project, which is one of the most ambitious sugar plantation projects in West Africa. Upon completion, the Project will utilise best-in-class processing technology and clean renewable energy through the treatment and recycling of effluents, agricultural waste, and solid waste. Furthermore, the Project will go a long way towards solving Nigeria’s current dependence on imported sugar raws by utilizing homegrown processed cane sugar and through our integrated outgrowersinitiative substantially reduce unemployment in the community” Ends.

About AFC – www.africafc.org

AFC was established in 2007 to catalyse private sector-led infrastructure investment across Africa. It is the second highest investment grade rated multilateral financial institution in Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has invested over US$9.3 billion in projects across 35 African countries since inception.

About BUA International Limited (BUA Group) – https://buagroup.com/

BUA Group is an infrastructure, mining and manufacturing world class conglomerate headquartered in Nigeria with diversified investments spanning key businesses, spread across African and global markets. In relation to its sugar operations, BUA is the largest refiner of sugar in Nigeria with an operating capacity of 1.5 million tons per annum. Its mission is to provide high-quality products and services with a focus on total quality management.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211207005576/en/

Source: AETOSWire

Contacts