The International Finance Corporation is considering a 13-million-euro (US$15 million) loan to support a grain milling and storage project in Mali, in a move aimed at boosting local food processing capacity and helping meet growing demand for wheat-based products.
The proposed financing would go to Société Diarra Négoce (SDN), a Malian agro-industry and logistics company seeking to expand into grain processing.
According to project details released on Friday, the financing package would include a 6.5 million euro direct loan from the IFC, the private-sector arm of the World Bank, along with additional concessional funding mobilised through the International Development Association’s private-sector window.
The mechanism is designed to make commercially challenging projects viable in fragile or high-risk markets, where access to long-term financing remains limited.
The loan is still subject to board approval, but if approved, it would help fund the construction of a new grain processing complex in Banankoro, in Mali’s Koulikoro region, south of the capital Bamako.
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The planned facility would include a wheat flour mill with a daily processing capacity of 300 metric tons, grain storage infrastructure capable of holding 20,000 metric tons, and a 2.3-megawatt solar power plant to supply electricity to the site.
The project reflects efforts to improve Mali’s domestic food processing industry and reduce reliance on imported finished products, as consumption of wheat-based foods such as bread and flour products continues to rise.
The IFC said the investment could help strengthen local value addition in agriculture while supporting employment and industrial activity in a country where farming remains a major source of livelihoods but where agro-processing capacity is still limited.
Mali’s agriculture sector employs around 70 percent of the population, but contributes only about 38 percent of gross domestic product, underlining persistent structural weaknesses in productivity and value creation.
The country’s average farm size is estimated at 4.8 hectares, and output remains constrained by limited access to water, underinvestment and low yields, according to the project summary.
Beyond flour production, the Banankoro facility is expected to produce additional economic benefits through the use of by-products.
SDN plans to use bran generated during the milling process in the production of animal feed, potentially creating linkages with the livestock sector and reducing waste.
The company also intends to fortify flour with micronutrients, a measure that could contribute to efforts to address malnutrition, which remains a concern in parts of Mali and the wider Sahel region.
The total cost of the project is estimated at 18.6 million euros, with the remaining funding expected to come from the project sponsor.
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In addition to financing, the IFC said it would provide technical support to strengthen the company’s financial management systems, food safety standards, and environmental and social practices.
That support would also include the development of risk management mechanisms and stakeholder engagement processes, which are often required under international lending frameworks for projects in emerging and frontier markets.
SDN is already active in several sectors linked to agriculture and trade, including livestock feed production, cottonseed oil processing, and transport and logistics.
Its move into grain processing comes as investors and development finance institutions increasingly seek to back projects that can improve food security, domestic manufacturing and energy resilience in African economies facing rising import bills and supply chain pressures.
For Mali, where political instability and economic constraints have weighed on investment, the proposed project could offer a modest but strategic boost to local agro-industrial capacity.
If approved, the financing would mark another example of development lenders using blended finance to support private sector expansion in fragile markets where conventional commercial lending is often out of reach.
