FMO has granted a US$100 million, seven-year financing facility to Olam Agri to help sustain rice supplies to African markets that rely heavily on imports of the staple grain.
The loan, announced on March 4, will provide working capital to support the shipment of rice from major Asian producing countries India, Thailand and Vietnam to markets across Sub-Saharan Africa, where rice consumption continues to outpace domestic production.
The financing will be borrowed by Olam Global Agri Pte. Ltd. and Olam Global Agri Treasury Pte. Ltd., both units of Olam Agri and part of Olam Group. At the time of signing, the facility is guaranteed by Olam Group, although the guarantee will transfer to Olam Agri once its separation from the parent group is completed.
FMO said the loan is intended to help maintain stable rice supplies to African countries where the commodity is a central component of daily diets.
“The proceeds will support working capital needs for the rice trade and enable the movement of rice from key Asian production hubs to import-reliant African markets,” the development bank said in a statement.
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Africa remains one of the world’s largest rice-importing regions due to a structural gap between production and consumption. In 2025, rice imports into Sub-Saharan Africa reached 22.3 million tonnes, according to estimates from the Observatory of International Rice Statistics (OSIRIZ).
The figure represented a 13.7 percent increase from 19.6 million tonnes recorded in 2024, driven in part by abundant global supplies that allowed importing countries to expand purchases.
The largest importers included Nigeria, which imported around 3.4 million tonnes, followed by Côte d’Ivoire with 2.5 million tonnes and Senegal with about 1.9 million tonnes. Together, the three countries accounted for roughly 35 percent of total rice imports into the region.
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Despite efforts to expand domestic production, Africa continues to rely on foreign supplies to meet rising demand. Estimates suggest the continent produced between 25 million and 28 million tonnes of milled rice in 2025.
However, consumption levels particularly in Sub-Saharan Africa are significantly higher, reaching about 38 to 40 million tonnes annually. The shortfall has made imports an essential component of regional food supply, with foreign shipments covering as much as 40 percent of consumption in some markets.
Population growth, rapid urbanisation and changing dietary habits have all contributed to rising rice demand across the continent.
Olam Agri, which operates in agricultural origination, processing and distribution across emerging markets, plays a major role in global food commodity trade. The company handles products ranging from grains and oilseeds to wheat milling, edible oils, animal feed, cotton and sugar.
In 2025, the company managed a total volume of 53.7 million tonnes across its agricultural portfolio.
The firm is also a founding member of the Sustainable Rice Platform, an international initiative promoting environmentally sustainable rice cultivation practices, including lower greenhouse gas emissions and improved water efficiency.
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Hans Bogaard, Director of Agribusiness, Food and Forestry at FMO, said the financing reflects the bank’s commitment to supporting resilient and sustainable food systems.
“We are pleased to support Olam, whose combination of large-scale reach, deep engagement with smallholder farmers and advanced digital systems positions it to lead sector-wide progress on sustainability,” Bogaard said.
Julie Greene, Chief Sustainability Officer at Olam Agri, said the facility would strengthen the company’s capacity to ensure reliable food flows between producing and importing regions.
“Ensuring reliable access to affordable and nutritious food is at the core of what we do as a global agri-food business,” Greene said.
“This support from FMO strengthens our ability to move essential food commodities from areas of abundant production to markets with strong demand, while continuing to invest in resilient and transparent supply chains.”
The financing highlights the role of development finance institutions and private sector companies in sustaining global food trade, particularly for staple commodities such as rice that remain critical to food security across Africa.
