ImpactConnect loan for nutrient-rich food production in India

ImpactConnect, a promotional programme implemented by DEG and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) for projects by German and European companies, is providing the food manufacturer Lorenz Snacks with a loan of EUR 1.3 million. This funding will make it possible to establish a production line in India for ready-to-use therapeutic food (RUTF), which has been specially developed to combat malnutrition in crisis situations.

Lorenz Snacks India Private Ltd, part of the German Lorenz Snack-World Group, is sourcing peanuts and other ingredients for the new production line from a regional co-operative with around 700 farmers. The RUTFs consist of a nutrient-rich peanut paste, enriched with vitamins and minerals. This paste is an easily distributable solution for treating acute malnutrition in crisis areas. Demand for RUTFs has risen sharply in recent years, with organisations such as the World Food Programme and UNICEF being the main customers.

Support for regional agriculture and sustainable business models

The company’s cooperation with local producers in India improves the traceability of the supply chain and supports small farmers in the region. The new production line will create an additional 10 to 30 local jobs.

Jan Müller, head of the ImpactConnect programme, emphasises the developmental significance: “This project could encourage other companies to start producing RUTFs and thus meet the huge global demand for this life-saving product.” Lorenz’s involvement could bring the product out of its niche and turn it into a sustainable business model.

Successful first half of 2024 for ImpactConnect

The recently committed ImpactConnect loan to Lorenz highlights the demand for this successfully developed programme. It is part of the “Partners in Transformation” offer of the German Federal Ministry for Economic Cooperation and Development (BMZ). Financing with a volume of more than EUR 26 million was concluded in the first half of 2024. By promoting entrepreneurial investments in countries such as Peru, South Africa, Kenya, Ukraine and now also India, the programme is living up to its global aspirations.

ImpactConnect offers attractive, streamlined loan financing from EUR 750,000 to EUR 5 million with terms of three to seven years for investment projects with a development impact.

ImpactConnect – We finance progress