Dutch development bank FMO is considering an $11.5 million debt facility for Kenya-based avocado oil producer Origen Fresh EPZ to expand processing capacity and support cleaner, circular manufacturing operations, according to project documents seen by DevFiNews.
The proposed package includes $10 million in committed financing and an additional $1.5 million uncommitted tranche.
The funds will support the construction of a solvent extraction plant that will allow Origen to recover more oil from avocado pomace, a byproduct of avocado processing.
The expansion will also enable the company to replace firewood with pomace-based biomass energy, lowering emissions and improving resource efficiency.
Founded in 2020, Origen sources avocados from smallholder farmers and aggregators across East Africa and processes them into organic and conventional avocado oil for customers in North America, Europe and Asia.
FMO said the investment would support inclusive economic growth by improving market access for smallholder avocado farmers while helping Origen build a more resource-efficient operating model through agricultural waste utilization.
Development finance institutions have increasingly backed African agribusiness processors as they seek to strengthen local value-added manufacturing, rural incomes and climate-resilient supply chains.
The project has been classified as Category B+ under FMO’s environmental and social framework.
Key risks relate to labor and working conditions, occupational health and safety, pollution prevention, waste management, supply-chain biodiversity and physical climate risks.
FMO said mitigation measures would be implemented through an environmental and social action plan aligned with several IFC Performance Standards, including those covering labor, resource efficiency, community health and biodiversity conservation.
Kenya has become one of Africa’s largest avocado exporters, with processors seeking to move further up the value chain through products such as avocado oil amid rising global demand from food and cosmetics manufacturers.