DFCD to support cocoa sector in Nigeria
A proposal has been approved to support John Vents Industries Ltd.
Imagine the potential of a business poised to increase climate resilience, facilitating a more inclusive and productive cocoa industry in Nigeria. John Vents Industries Ltd (JVI) aspires to achieve this, with a mission to become Nigeria's leading sustainable, deforestation-free cocoa processing company.
Challenges and need for adaptation
The cocoa sector in Nigeria faces similar challenges to other West African cocoa countries, such as: climate change, unsuitable soils, potential spread of disease, inefficient farming practices, and weak governance and business systems. These issues lead to low yields and inefficiencies, and require significant adaptation.
DFCD partnership with JVI
To address these challenges, the Dutch Fund for Climate and Development (DFCD) aims to partner with JVI to de-risk their business. This partnership seeks to scale JVI's operations while preventing deforestation and enhancing the resilience of smallholder farmers and local communities.
Approval of cocoa business proposal in Nigeria
The DFCD Origination Facility's Investment Committee has approved a proposal to support JVI in scaling up the deforestation-free cocoa sector in Nigeria. This investment proposal will enable JVI to become a leading sustainable cocoa processing company, de-risking planned investments in the sustainable cocoa value chain, and expanding the reach of its Rainforest Alliance certification and climate benefits.
SNV's commitment
In light of this, SNV intends to sign a €425,000 grant funding agreement with JVI to support the final development of the investment proposal. Additionally, SNV will provide a technical assistance package.
Project outputs
The origination project will yield the following outputs:
Multi-stakeholder engagement
Baseline assessment of farmlands
ESG & GESI Assessments
Identification of climate-smart practices for cocoa and development of training modules
Model farm piloting
Commercial and technical due diligence and preparation of a business plan
Expected outcomes
The investment proposal aims to achieve the following outcomes:
30,000 hectares of sustainably managed farmland, improving resilience to climate change
300 direct additional jobs
705,000 service users, including 37,500 from vulnerable groups
About the DFCD
The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.
About SNV
SNV is a global development partner deeply rooted in the African and Asian countries where we operate.
With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.
About John Vents Industries
JohnVents Industries Limited (JVI) is dedicated to creating sustainable value across the entire cocoa value chain, from meticulous sourcing to finished products. With their existing 15,000 MT processing plant and recently acquired 30,000 MT second processing plant, they aim to transform African cocoa beans into premium products enjoyed worldwide. Since 2021, they have successfully exported 20,000 metric tons of cocoa butter and cake to Europe, the USA, and beyond. They actively invest in farmer education, infrastructure development, empowering communities and fostering sustainable livelihoods.
You can read the full disclosure document here
For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:
SNV - Dutch Fund for Climate and Development: dfcd@snv.org