Yara International ASA , a dealer in crop nutrition, announced the divestment of its fertilizer import and distribution subsidiary in Ivory Coast.
Recognizing the ever-evolving challenges in the global food industry, Yara has undertaken a thorough analysis of its operations, considering market dynamics, regulatory environment, and strategic growth opportunities. This evaluation has led to the decision to divest its position in Ivory Coast, warranting the allocation of resources and investments towards selected countries in the continent, which offer a higher potential for the successful implementation of its 2030 Africa Food Systems Transformation strategy.
“The decision to divest is driven by the acknowledgment that Yara’s ambition to become a true leader in the Food Systems Transformation in Africa, can only be reached in a phased approach. A necessary first step is to right-size our geographical footprint and prioritize those specific crops and regional segments offering the highest opportunity to establish closed-loop partnerships, which will secure a sustainable improvement in the Sub-Saharan smallholder farmer’s productivity and profitability”, Luis Alfredo Pérez, SVP Yara Africa.
“In our pursuit of securing the necessary investments, it is imperative that we streamline our operations and exercise prudent capital allocation. A realistic and disciplined approach is necessary, with a strong focus on core markets that can yield scale and drive bottom-line growth. I am confident that this strategic decision will enable us to optimize returns, enhance shareholder value, and strategically position our company for sustained success in the years ahead” Wikus Grové, Financial Director Yara Africa.
“Yara has always put its employees at the forefront of its decision-making and this point we can assure our employees that no jobs will be lost due to this decision, we value our talented workforce and understand that they are instrumental in our success,” Taz Hassim, HRBP Yara Africa.
The divestment transaction is anticipated to be finalized by the end of April 2024.