Dr. Johannes Flosbach, Executive Director of Cormat Nigeria Limited, a subsidiary of TGI Group, underscored the vital role of sustainable funding in advancing Nigeria’s agribusiness sector during the 11th German-Nigerian Business Forum (GNBF) held in Lagos.
Participating in the panel discussion titled “Strengthening the Nigerian Agribusiness Industry for Food Security and Export,” Dr. Flosbach emphasized that agriculture holds the key to Nigeria’s economic transformation. However, he highlighted a significant bottleneck—access to affordable funding.
“Agriculture is the future, and agriculture means food processing. However, we also need to address a key challenge—funding. Working capital at 30% interest or more is unsustainable, making it almost impossible to invest in new projects. I believe future forums will need to focus on funding solutions to enable the growth of this critical sector,” said Dr. Flosbach.
The Funding Challenge
Nigeria’s agribusiness sector has immense potential, but high-interest rates on working capital loans, often exceeding 30%, pose a significant hurdle. This deters investment in new agricultural projects and stifles growth. Dr. Flosbach called for innovative solutions and partnerships to ensure affordable financing for the sector.
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TGI Group’s Commitment to Sustainable Agriculture
As part of his address, Dr. Flosbach spotlighted TGI Group’s ongoing efforts in rural farming and sustainable agriculture. The group has invested heavily in empowering rural communities through modern agricultural practices and initiatives aimed at improving productivity and sustainability.
By prioritizing innovation and sustainability, TGI Group aims to position Nigeria’s agribusiness sector as a global player, capable of meeting both domestic food security needs and international export standards.
Collaboration as a Catalyst
Dr. Flosbach also stressed the importance of fostering collaborations between Nigerian and international stakeholders to unlock the sector’s full potential. He called for stronger partnerships between local players and global investors, particularly in the areas of funding, technology transfer, and skill development.
“The agribusiness industry cannot thrive in isolation. It requires continued collaboration between Nigerian and international partners to address challenges and leverage opportunities,” he said.
GNBF: A Platform for Strategic Dialogue
The 11th German-Nigerian Business Forum, co-organized by AHK Nigeria and Afrika Verein with the support of the German Federal Ministry for Economic Affairs and Climate Action, served as a crucial platform for stakeholders to discuss opportunities and challenges in strategic sectors, including:
- Agribusiness
- Renewable Energy
- Construction
- Vocational Education
The forum emphasized the need for innovative approaches and partnerships to drive economic growth and development in Nigeria, with agriculture standing out as a cornerstone for food security and export diversification.
A Call to Action
Dr. Flosbach’s call for sustainable funding solutions comes at a time when Nigeria is striving to achieve self-sufficiency in food production and become a competitive exporter in the global market. Addressing the funding challenge will require coordinated efforts from both public and private stakeholders, as well as international partners willing to invest in the nation’s agribusiness potential.
With forums like the GNBF fostering dialogue and collaboration, the path toward a more robust, inclusive, and sustainable agribusiness industry in Nigeria is gradually taking shape.