AFRICA – Olam Group has announced that its food, feed and fibre operating unit, Olam Agri, has secured a seven-year US$100 million financing facility to support rice trade flows into Africa, reinforcing its position in staple grain supply chains at a time of portfolio restructuring and balance sheet recalibration.
In a regulatory filing on March 2, the Singapore-listed agribusiness said the facility will initially be guaranteed by Olam Group.
The Facility has Olam Agri subsidiaries, namely, Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd. as borrowers.
The guarantee structure will shift once the group completes the proposed sale of its 44.58% stake in Olam Agri to Saudi Agricultural and Livestock Investment Company (SALIC), a strategic move aligned with Saudi Arabia’s food security agenda and its broader Vision 2030 objectives.
The financing is being provided by FMO, the Netherlands-based development finance institution known for supporting sustainable private sector growth in emerging markets.
The funds will be deployed to facilitate the flow of rice from India, Thailand and Vietnam into African markets, where rice remains a critical staple and import demand continues to rise.
Commenting on the filling, Hans Bogaard, Director, Agribusiness, Food & Forestry at FMO, said that FMO is pleased to support Olam, a founding member of the Sustainable Rice Platform, which promotes low-emission, water-efficient rice farming.
Its combination of large-scale reach, deep smallholder engagement, and advanced digital systems gives the company a structural advantage to be at the forefront of sector-wide sustainability progress.
“FMO looks forward to deepening partnership with Olam Agri and contributing to more reliable, sustainable, and equitable food systems across the Asian and African continents,” he added.
On his part, Julie Greene, Chief Sustainability Officer of Olam Agri noted that ensuring reliable access to affordable, nutritious food is central to what Olam Agri does as a global food and agri-business.
“This support from FMO strengthens our ability to move essential food from places where it’s grown more abundantly to markets where there’s high demand, while continuing to invest in resilient, transparent supply chains,” he said.
Supporting Africa’s Structural Rice Deficit
Africa accounts for roughly 40% of global rice imports, according to data from USDA, with West Africa alone representing a significant share of seaborne trade.
Despite growing domestic production in countries such as Nigeria and Côte d’Ivoire, the continent faces a persistent structural deficit driven by population growth, urbanisation and changing consumption patterns.
India remains the world’s largest rice exporter, while Thailand and Vietnam are key suppliers of both white and parboiled rice varieties preferred in African markets.
Trade finance facilities such as this one are essential to manage procurement cycles, currency exposure and working capital requirements in volatile grain markets.
Olam Agri operates across the full value chain, from origination and trading to processing and distribution, and is active in grains, oilseeds, edible oils, animal feed ingredients and packaged food products including pasta.
The company was created in early 2020 as part of Olam Group’s strategic reorganisation into distinct operating entities, separating its agricultural supply chain businesses from its ingredients division.
The new facility comes as Olam Group continues to reshape its portfolio and strengthen its capital structure.
In its recent financial updates, the group highlighted efforts to streamline operations, reduce net gearing and unlock value through strategic transactions, including the phased divestment of stakes in Olam Agri.
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