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Signature SIFCA
A EUR 90m loan has just been allocated on this 8 October to SIFCA to finance the agricultural investments of its subsidiaries. Proparco has organized the loan with cofinancing from its Dutch counterpart, FMO, and Société Générale. The project is supporting the growth of a major agro-industrial player and will thereby contribute to the economic and social development of the region. A biomass power plant producing electricity from palm waste will also generate low-carbon electricity.

SIFCA, an agro-industrial leader in West Africa, operates in Côte d’Ivoire, Ghana, Liberia, Nigeria and Senegal, via about ten or so companies. SIFCA employees over 33,000 people and sources its raw materials from over 110,000 small planters.

 

This EUR 90m credit line made available to SIFCA by Proparco (lead arranger), FMO and Société Générale will be used to finance its investment plan. The project is supporting the growth of a player operating in rural areas and post-conflict countries and will thereby have strong economic and social impacts.

 

Indeed, over the next 5 years, the extension of activities brought about by this project will help create or maintain over 180,000 direct and indirect jobs in the five countries in question (some 33,000 direct jobs and 150,000 indirect jobs, through small family farms). The project will contribute to training and transferring technology and know-how as SIFCA offers technical assistance to farmers to train them in good agricultural practices.

 

The growth in SIFCA’s activities supported by this financing will also allow a local value chain to be developed and will increase the supply of basic necessities. Indeed, the cooking oil and sugar production, which are basic necessities, will be earmarked for local markets and will replace imports from Asia. This will lower the prices of basic foodstuffs and will contribute to food self-sufficiency in West Africa. 100% of the rubber will be exported due to the fact that there is no tyre production unit in the region.

 

Finally, this project will develop social facilities in rural and remote areas. SIFCA regularly maintains and rehabilitates roads, and manages schools, clinics, infirmaries and infrastructure to supply running water which employees, their families and neighboring communities have access to.

Part of the investment also includes the Biokala project, a biomass power plant with a capacity of 46 MW producing electricity from palm waste, which will provide people in Côte d'Ivoire with access to a low-carbon source of electricity.

 

“This financing is in line with our mandate to support agriculture in Sub-Saharan Africa, particularly in certain Least Developed Countries and post-conflict countries”, points out Delphine Moreau, agribusiness expert in Proparco’s Industry, Agriculture and Services Division. “This financing will be combined with an Environmental and Social Action Plan which will allow us to help SIFCA and its subsidiaries improve their E&S practices.”