RMG Concept partners with Wienco for improving yields and revenues amongst farmers

Date:08-24-2011

RMG Concept Ltd., a leading distributor of crop protection products in West Africa with primary operations in Abidjan, Côte d'Ivoire, announced a partnership with Wienco (Ghana) Limited, a leading supplier of agro inputs in agriculture in general and cocoa in particular in Ghana. In connection with this partnership, RMG also announced a €50 million financing arranged by LiquidAfrica Holdings ("LAH") of South Africa, and led by Advanced Finance and Investment Group ("AFIG Funds"), manager of the Atlantic Coast Regional Fund ("ACRF"), with debt lead arrangers Standard Bank of South Africa.

The proposed partnership allows RMG to leverage Wienco's position as a leading supplier of agro inputs to the Ghana economy, and in particular to take advantage of Wienco's experience in the development of private sector initiatives aimed at improving yields and revenues amongst smallholder farmers. These include Wienco's widely successful Cocoa Abrabopa scheme, which supports farmers through the supply of fertilizer and agro-chemicals on credit, training in input application methods, as well as key aspects of business training.

For Wienco, the alliance provides the opportunity to expand its smallholder concept to over fifteen new markets in West Africa.

According to Mr. Daniel Ruegg, RMG's Chief Executive Officer: "Our partnership with Wienco represents a unique opportunity for RMG. We see significant scope to add value to a more diversified agricultural output in the economies in which we operate, and ultimately contribute to the economic development of the region."

"As we looked at the tremendous opportunity presented by the agricultural sector of many economies in West and Central Africa, we were drawn to RMG's strategy-led business model, and experienced and disciplined management team. We were also impressed with RMG's positioning as one of few companies in the West African region with a formulation and packaging plant for both solid and liquid agro-chemicals, a compelling competitive advantage that allows it to adapt quickly to any changes in market conditions and to respond rapidly to specific client needs." said Mr. Henri Wientjes, Chairman of Wienco (Ghana) Limited.

Commenting on the capital raising, Mr. Cyrille Nkontchou, CEO of LAH, said: "ACRF, as RMG's principal equity partner, participated in the €50 million financing round through a total commitment of $14 million (approximately €10 million) with the other €40 million coming from Standard Bank and structured in the form of senior debt and working capital facilities."

Speaking on behalf of ACRF, Papa Madiaw Ndiaye, CEO of AFIG Funds, said: "We are pleased to join RMG in this partnership with Wienco. We strongly believe that RMG's competitive positioning and client value proposition will be greatly enhanced by its alignment with a market leader such as Wienco."