IDB Invest Partners with Derrimon to Support Food Security through Sustainable Operations in Jamaica
- The project will help to reduce the company’s GHG emissions increasing by approximately four times the company’s current use of renewable energy.
IDB Invest provided US$13 million in lending to Derrimon, a leading products distributor in Jamaica, to support the company's capacity to serve vulnerable populations as it plays a crucial role in boosting agricultural productivity, product diversification, and innovative supply chain solutions in the country.
The project will help modernize the company’s existing warehouse structure, increasing efficiency by reducing days of inventory. As a result, it will also increase market linkages from regional imports, particularly from Guyana and Suriname where Derrimon imports key staples of the Jamaican diet.
“Latin America and the Caribbean region is responsible for 40% of the food traded worldwide. At IDB Invest, we are committed to working with companies like Derrimon in Jamaica to play a leading role in being part of the solution to global needs,” said James Scriven, CEO of IDB Invest.
The company is also expected to increase its purchases from local suppliers by 25%, most of which are micro, small and medium-sized enterprises (MSMEs), while regional imports would be more than doubled. This increase is expected to generate new employment of up to 8% during the life of the project.
"This partnership is a testament to the strong foundation we have built over the past years and reinforces our commitment to excellence in trade financing, brand development, job creation, and green energy initiatives. Collaborating with IDB Invest is a historic milestone for us, and we are confident that it will significantly contribute to the growth and sustainability of our business," shared Derrick Cotterell, Chairman and Group Chief Executive Officer at Derrimon Trading Company Ltd.
Additionally, as part of the company’s modernization efforts and increased efficiency, the project will also contribute to reducing its GHG emissions, increasing its current use of renewable energy by approximately four times through the installation of solar panels.
The project includes an environmental and management plan that will also focus on continuous improvement of Derrimon’s Environmental and Social Management System.
IDB Invest’s participation in this project is anticipated to help catalyze other investments in Jamaica and mobilize the private sector to support food security and sustainable business across other Caribbean countries.
The project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12), and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Derrimon Trading Co Limited, established in 1998 in Jamaica, was founded by Derrick Cotterel, the current CEO and Chairman of the Board. The primary shareholders are Derrick Cotterell and Monique Cotterell. In recent years, through a series of strategic acquisitions in consumer-related businesses, the company has undergone a transformation into a vertically integrated Jamaican enterprise, with a workforce of approximately 1,300 employees. The group operates three primary divisions: Distribution, Retail & Wholesale and Manufacturing.