IFC backs $22 million Mali agribusiness project with blended financing support

International Finance Corporation (IFC), the private-sector arm of the World Bank Group, is advancing a €18.6 million ($21.5 million) agribusiness investment in Mali, backing Societe Diarra Negoce with a €13 million ($15 million) financing package to build a modern wheat milling complex.

The project, pending approval by IFC’s board on May 15, 2026, targets food security challenges in West Africa by reducing reliance on imported flour and strengthening local processing capacity. The initiative reflects IFC’s broader strategy to mobilize private capital into fragile economies while supporting job creation, climate resilience, and agricultural industrialization in Mali.

Financing food security and local processing
The investment will support the construction of a 300-ton-per-day wheat flour mill in Banankoro, located in Mali’s Koulikoro region. The facility will include 20,000 metric tons of grain storage capacity and a 2.3MW solar power installation, positioning the project as both a food production and climate-aligned infrastructure initiative.

IFC’s proposed €13 million ($15 million) package comprises a €6.5 million ($7.5 million) direct A loan, alongside €4.875 million ($5.62 million) from the IDA Private Sector Window’s Blended Finance Facility and €1.625 million ($1.87 million) from IFC’s Concessional Capital Window. The remaining funding will be provided by the project sponsor.

The blended finance structure is designed to mitigate high country and project-specific risks, enabling long-term financing that would otherwise be difficult to secure in Mali’s operating environment. IFC estimates the concessional component at approximately 4.5% of total project costs.

Advisory support and operational strengthening
Beyond financing, IFC will provide advisory services to enhance Societe Diarra Negoce’s operational capacity, focusing on financial management systems and food safety standards. These interventions are expected to improve efficiency, strengthen compliance, and support long-term sustainability of the business.

Driving jobs, resilience and climate impact
The project is expected to boost domestic flour production, reduce reliance on imports, and create downstream employment opportunities across Mali’s agricultural value chain. The inclusion of solar power aligns with broader climate mitigation goals, lowering the facility’s carbon footprint while improving energy reliability.

Classified as a Category B project with limited environmental risk, the investment reflects IFC’s blended finance strategy to catalyze private capital in high-impact sectors. If approved, the initiative will position Societe Diarra Negoce as a key player in Mali’s grain processing industry while advancing food security and economic resilience in the region.