Our investment
Description of the investment.
Description of the investment.
We made an initial $15 million investment in 2023 to fund Valency's expansion in Nigeria. In 2024 we made an additional $15 million investment to further support the business and provide the equity capital needed to execute Valency's expansion plans.
Our second investment will go towards a new cashew processing plant and biochar facility in Côte d’Ivoire. Increasing cashew processing capacity will enable more value creation in Côte d’Ivoire, as opposed to raw cashew nuts being exported to other countries for processing into a finished product. It will also allow Valency to offer a more traceable end product to its customers, with a smaller carbon footprint due to shorter shipping routes.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
To support local employment and in-country value addition by supporting downstream processing activity (SDG8.5, 9.2) To support improved livelihoods for smallholder farmers through increased income-generating opportunities (SDG8.5) |
|
|
How?
| Primary | Secondary |
|---|---|
|
Providing equity capital to largely finance the permanent working capital and capex needs for sourcing cashews for processing at Valency’s new facilities in Côte d’Ivoire. |
Acting as an economic enabler through the generation of foreign exchange, given Valency's output will be exported. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Employees |
Côte d’Ivoire |
Cashew processing in Côte d’Ivoire (as in Nigeria, which we have funded for Valency) is a highly labour-intensive process due to manual sorting and deshelling. Valency expect 80 per cent of the new workforce to be women, with these being permanent, full-time staff. |
| Smallholder farmers |
Côte d’Ivoire |
Valency procures indirectly from farmers through traders/agents and cooperatives. The large majority of farmers are expected to be smallholder farmers (generally 1-2 hectares). |
How much?
| Scale | Depth/Duration |
|---|---|
|
The cashew processing facility under development is expected to employ, at full capacity, c.2,500 people workers. The cashew processing capacity being funded in CIV (45,000 MT) is estimated to require sourcing from an additional c.120,000 farmers. |
Impact due diligence of Valency employees in Nigeria reported improved economic outcomes: 69 per cent of employees reported not having access to a job with similar pay and benefits to Valency; 74 per cent reported their quality of life improving as a result of working at Valency. |
Contribution/additionality
| Contribution/additionality |
|---|
|
We are providing Valency with equity capital which is not available from commercial sources. We are also providing significant ongoing value-add support, helping to improve E&S practices around labour, including around gender, through the delivery of a comprehensive Environmental and Social Action Plan (ESAP). |
Risk
Evidence RiskRelates to the risk of not being able to directly monitor and assess the income impact on farmers (the secondary impact) given that sourcing is conducted indirectly through intermediaries. |
Environmental and social information
-
Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
-
Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
This investment is classified as medium-high E&S risk. We agreed an ESAP that includes (i) conducting a labour and working conditions assessment, (ii) further developing a company-wide ESMS, (iii) mapping the supply chain and develop a supply chain risk assessment and management system, and (iv) agreeing a phase out plan for banned or restricted hazardous chemicals.
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
-
Key facts
- First published
:
When the investment was first published on the website database.
- March 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- March 2025
- Project number
:
An identifier number shared by investments in the same project.
- D7200
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia, Southeast Asia, West Africa, Western Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Cote d'Ivoire
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Business and consumer services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Food Products
- Investment type :
- Equity
- Start date :
- November 2024
- Amount :
- $15m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Singapore
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
Related investments made by BII into this company:
| Investment name | Commitment | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Investment 01 | $15m | South Asia, Southeast Asia, West Africa, Western Asia | Business and consumer services | October 2023 | Active |
