Valency International operates large-scale commodity processing facilities across four countries in Africa and Asia.

Swiss impact investor Blue Earth Capital has provided a $30m private credit loan to Valency International, a global trader, processor and exporter of agricultural commodities which operates large-scale processing plants across four countries in Africa and Asia.

The loan was designed as a so-called impact-linked facility to encourage borrowers to align with certain pre-defined social and environmental impact goals, Blue Earth said.

Singapore-based Valency, which specialises in edible nuts such as cashews and sesame seeds and agricultural inputs such as agrochemicals and fertilisers, will use the funds to buy agricultural commodities from its network of smallholder farmers and local traders across Africa.

Although Africa is the world’s top producer of raw cashew nuts and sesame seeds, according to the Food and Agriculture Organisation of the UN (FAO),  it is mostly focused on crop cultivation, growth, and harvesting, with limited involvement further down the supply chain. As a result, most of Africa’s raw production is exported to Asia for processing.

Valency’s investment into processing plants in Africa not only creates jobs for low-skilled populations, it also lowers the overall carbon footprint of the global cashew supply chain because it limits the need for cross-continental shipping, according to Blue Earth. Valency’s distribution of agrochemicals and fertilisers also helps ease chronic food insecurity in the region, which often struggles with poor crop yields.

“This investment will help us enhance our sourcing network, reduce environmental impacts, and contribute to the sustainable development of agriculture in the region, all while aligning with our mission to create lasting social and environmental impact,” said Sumit Jain, CEO of Valency.

Blue Earth is owned by the Blue Earth Foundation, a Swiss-based non-profit whose initiatives and business ventures focus on creating a more equitable and sustainable future. Since its foundation a decade ago, the firm has grown to $1.5bn in assets under management.