Tiryaki Helps Bolster Food Security, Diversify the Economy in Iraq with support from IFC, FMO and Proparco
published on 13 December 2023
IFC, FMO and Proparco are supporting Sama Al-Manar, a subsidiary of Türkiye-based Tiryaki Agro, in developing a new state-of-the-art agro-industrial complex in Iraq's Umm Qasr Port, including a soybean crushing plant and warehouses, which will help bolster food security, create jobs, and diversify the country’s economy away from fossil fuels.
IFC will deliver a debt-financing package of $112.5 million to Sama Al-Manar, which includes a loan of up to $66 million from its own account as well as mobilizing up to $31.5 million from FMO, the Dutch Entrepreneurial Development Bank, and up to $15 million from Proparco.
Sama Al-Manar currently imports and sells corn and soybean meal—the main ingredients for animal feed. The new facility will enable the company to more than double its imports of corn by 2027 and import raw soybeans for processing for the first time. Sama Al-Manar will process raw soybeans, producing both soybean meal for domestic animal feed, and soybean oil, which is set to become one of the country’s largest non-oil exports. The increased local production of animal feed at competitive prices will also help bolster the development of Iraq’s poultry sector.
Süleyman Tiryakioğlu, CEO of Tiryaki Agro, said: "We are building a soy crushing plant and corn warehouses in Tiryaki Group’s exclusive berth in the Umm-Qasr port of Iraq. The warehouses, which are part of the investment, have been completed and the soy crushing operations will begin in early 2024. With a daily crushing capacity of 3 thousand tons, the soy crushing plant is expected to generate more than 700 million dollars of revenue annually, half of which will be generated through exports."
Bram Reijnen, Manager Agribusiness, Water, and Food at FMO, said: “We are pleased to be investing in the revitalization of Iraq’s private sector via our long-term partner Tiryaki’s subsidiary, Sama-al Manar. Through this investment, we are able to support the value-add within Iraq and local decent job creation. Investing effectively in states recovering from conflict and political instability traditionally comes with risks that are perceived as ‘too high’ by many institutional investors; we are grateful to our trusted partner IFC for leading this transaction as we jointly contribute to a viable diversified private sector in Iraq.”
Claire Fillatre, Head of Proparco's Agribusiness Corporate Financing Team, added:
“Having supported Tiryaki for many years, we are delighted to partner with IFC and FMO on this new phase of the group’s expansion, which will allow the group to vertically integrate its existing agri-food business in Iraq. The anticipated impacts hold significant importance for this fragile and conflict-affected country: enhanced food security by reducing dependency on imports and ensuring access to feed for local farmers, greater economic diversification and generation of job opportunities.”
"Manufacturing and agri-business drive job creation and foster economic growth. This South-South investment will not only be instrumental in enhancing Iraq’s food security and promoting economic diversification but will also result in a substantial contribution to the country’s total exports," said Ashruf Megahed, IFC’s Regional Industry Head, Manufacturing, Agribusiness & Services for Middle East, Central Asia, Türkiye, Afghanistan and Pakistan.
