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ADB, Tavan Bogd Group Sign Loan to Support Food Security, Inclusive Business in Mongolia – EQ Mag

ADB, Tavan Bogd Group Sign Loan to Support Food Security, Inclusive Business in Mongolia – EQ Mag

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ULAANBAATAR, MONGOLIA : The Asian Development Bank (ADB), Ulaanbaatar Flour (UBF), Tavan Bogd Foods (TBF), and Tavan Bogd Foods Pizza (TBF Pizza) today signed an $18 million loan to support food security and job creation in Mongolia. This assistance will help mitigate supply chain disruptions caused by the COVID-19 pandemic and the Russian invasion of Ukraine.

The loan comprises $8 million in assistance to UBF, $6 million to TBF, and $4 million to TBF Pizza. The proceeds will be used for additional working capital support for UBF to procure 60,000 tons of wheat directly from 6,000 local farmers. TBF and TBF Pizza will use the financing to construct eight additional quick-service restaurants and warehouses. Between the three companies, this project will support the livelihoods of 1,503 employees and create 358 new jobs.

“Securing domestic wheat supply is essential to the country’s food security, as wheat products account for a third of Mongolian’s caloric intake,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “We are delighted to work again with the Tavan Bogd group to boost food security and promote inclusive business in Mongolia.”

The loan will support gender equality and disability inclusion by hiring people with disabilities with a focus on women, displaying gender equality messaging in TBF restaurants, training staff on gender-sensitive disability inclusion, and by providing internships for women at UBF.

”We are pleased to cooperate again with ADB,” said Tavan Bogd Group Executive Director Khulan Dashdavaa. “The project will create more employment opportunities for UBF, TBF, and TBF Pizza as these companies already have in place strong policies to provide job opportunities to the disabled segment of the population. The new warehouses and restaurants will support local vendors and businesses while mitigating supply chain and food security risks due to logistics disruptions in the region.”

Food security is a priority for ADB, which recently announced plans to provide at least $14 billion over 2022–2025 to ease a worsening food crisis in Asia and the Pacific. Direct support to farmers and agribusinesses is key to this initiative with an expected $3.5 billion from ADB and $5 billion in cofinancing to be provided to the private sector, including the loan to Tavan Bogd.

UBF is one of the country’s largest buyers of domestically grown wheat and is the leading wheat miller with a 35% market share. TBF and TBF Pizza operate KFC and Pizza Hut quick-service restaurants and are key players in the food delivery industry. UBF, TBF, and TBF Pizza are members of the Tavan Bogd Group, one of the country’s largest diversified business groups.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: adb
Anand Gupta Editor - EQ Int'l Media Network