Dutch FMO proposes $ 10 million investment in Sri Lanka seafood exporter.
Daily FT: Dutch impact investor FMO said it has proposed a $ 10 million investment in one of Sri Lanka’s leading seafood exporters, which mainly employs underprivileged women including war widows.
Established in 2010, Taprobane Seafoods has one main processing facility and 14 smaller locations in the South Asian nation and employs over 2,000 people. Taprobane processes blue swimming crab and white-leg shrimp, which it began farming two years ago. It became the first Sri Lankan company to do so in response to a global shift in tastes for white-leg shrimp over black tiger shrimp. Impact investors look to generate financial returns while also creating positive social and environmental impacts.
FMO said in a disclosure that the funds will be used for capital expenditure such as rehabilitating abandoned shrimp farms owned by Taprobane and third-party growers, investing in new farms and hatcheries and building a new processing facility.
“For us, the integrated ‘farm to fork’ business model is the main reason to partner with [Taprobane],” FMO said.
FMO last year provided a $ 40 million loan to long-term Sri Lankan client Nations Trust Bank, which supports small businesses. The Bank serves over 600,000 customers and employs more than 3,000 people. FMO also provided a $ 15 million loan facility to LB Finance, a deposit-taking, non-banking financial institution. The company offers purchase, finance lease and vehicle loan facilities in Sri Lanka and supports 600,000 midsize, small and micro clients.
Sri Lanka’s exports industry is one of the main revenue generation modes of the country. The trade agreements and trade concessions enjoyed by Sri Lanka have helped boost the country’s export sector. Fisheries exports have become one of the country’s main export products given the island’s geographical positioning in the Indian Ocean. Local businesses engaged in the Fisheries sector have recorded a steady growth indicating a clear growth potential. All these have made many multilateral funding agencies pledge financial assistance to boost the fisheries industry in Sri Lanka after identifying its business potential. Given the expanding opportunities and the funding availabilities involving the local fisheries industry, foreign businesses/investors could explore business/investment opportunities in the industry.
|Article Code :||VBS/AT/19102022/X_8|