Sopuruchi Onwuka

The British High Commission (BHC) has declared that GuarantCo, part of the Private Infrastructure Development Group (PIDG), provided a 100 per cent guarantee to support a $75 million debt facility for Robust International Pte Ltd to construct a new cashew nut processing plant in Ogun State, Nigeria.

Ad >>>

The project, BHC stated, is expected to significantly expand Nigeria’s domestic cashew processing capacity and reduce the country’s reliance on exporting raw nuts.

Nigeria produces an estimated 250,000 to 300,000 tons of raw cashew nuts annually, but currently processes less than 10 per cent locally, exporting the bulk unprocessed and forfeiting up to 80 per cent of potential export value.

The new facility will more than double Robust’s existing processing capacity from 100 metric tons per day to 220 metric tons per day, helping to close a longstanding structural gap in Nigeria’s cashew value chain.

Beyond increasing processing capacity, the plant is expected to deliver substantial economic benefits. Robust will source cashew nuts from about 10,000 predominantly low-income smallholder farmers, strengthening local supply chains.

Over the lifetime of the guarantee, the project is projected to generate approximately $335 million in export revenue and increased procurement from domestic suppliers, the BHC stated.

It added that the facility will also incorporate environmental sustainability measures, including the conversion of waste by-products into value-added biomass and biofuel inputs to reduce waste and improve environmental outcomes.

In terms of employment, up to 900 jobs are expected to be created, with women projected to hold as many as 78 per cent of the roles.

Robust has also committed to increasing procurement from women farmers, targeting a rise from 15 per cent to 25 per cent by 2028 as it expands into new regions and scales its gender-responsive farmer outreach program.

The transaction aligns with the United Nations Sustainable Development Goals, particularly Goal 2 (Zero Hunger) and Goal 9 (Industry, Innovation and Infrastructure).

The debt facility was arranged through a Symbiotics-managed bond platform, which issued notes benefiting from the GuarantCo guarantee. The notes were fully subscribed by M&G Investments. The transaction was executed in record time, building on similar recent transactions in Côte d’Ivoire and Senegal involving GuarantCo, Symbiotics and M&G Investments.

PIDG, GuarantCo’s parent organization, is funded by six governments: the United Kingdom, the Netherlands, Switzerland, Australia, Sweden and Canada.

British Deputy High Commissioner, Jonny Baxter, said the project demonstrated how UK-backed institutions can help mobilize private capital into Nigeria’s productive economy.

“The UK is proud to support innovative financing that backs local processing and value addition,” he said. “This transaction supports jobs, exports and more resilient agricultural supply chains, while complementing wider UK-Nigeria trade and investment partnerships.”

Dave Chalila, Head of Africa and Middle East Investments at GuarantCo, said the deal marked the organization’s third collaboration with M&G Investments and Symbiotics, underscoring its focus on replicable financing structures that accelerate socio-economic development.

Vishanth Narayan, Group Executive Director at Robust International Group, described the project as a key step in strengthening processing capabilities and deepening engagement with farmers, while María Redondo, a director at M&G Investments, said the guarantee provided the confidence to invest institutional capital into a high-impact project while managing credit and currency risks.

Symbiotics’ Valeria Berzunza added that the transaction highlighted the role of structured financial products in channeling institutional investment into commercially viable, socially impactful projects across emerging markets.