The Iraq Britain Business Council (IBBC) reports that the Iraq Middle Market Development Foundation (IMMDF) recently disbursed a US$1.7-million loan to a private sector poultry company in Erbil, Kurdistan, to expand its corn-drying operations.
The loan will be repaid in monthly installments by December 2019.
The company will use the funds to purchase 20,000 tonnes of wet corn from 363 small farmers in the area of Erbil, with an average farm size of 10 hectares. By paying the farmers immediately upon delivery of their corn, the company will provide them with the necessary working capital to prepare the next corn or wheat crop. The IMMDF’s loan will therefore contribute to create a sustainable economic environment for those 363 farmers and their families.
The company will dry the wet corn in its own facility, built with a US$1.0 million loan from IMMDF in 2012, using 30 per cent of the dried corn to produce poultry food in its own mill, built with a US$2.5 million loan from IMMDF in 2010, and selling the remaining 70 per cent to other private sector feed mills in Kurdistan.
IMMDF was advised by Eversheds LLP in Amman, Jordan.
In spite of the challenging circumstances in Iraq, IMMDF continues to finance projects of private sector small and medium size companies that generate employment and economic growth in Iraq.