SIFCA: A loan to support the agribusiness industry in West Africa

SIFCA Group (“SIFCA”) was set up in 1964 and has become a leading integrated agribusiness group in West Africa. The Group is based in Côte d’Ivoire and produces, processes, and distributes palm oil, cane sugar and natural rubber. SIFCA employs over 33,000 people in West Africa (Côte d’Ivoire, Ghana, Nigeria, Liberia and Senegal) and sources its raw materials from over 110,000 smallholders.

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 and to refinance existing debt, in order to better match the maturities of its assets and liabilities. This financing will be combined with an environmental and social action plan which will help SIFCA and its subsidiaries improve their environmental and social practices.

Proparco has helped SIFCA review its strategy and E&S governance via its technical assistance services. The objective was to maximize the impacts its activity can have and improve the management of its risks.

A technical assistance project was set up in 2019 with SIFCA and FMO (cost-sharing between the 3 parties). It aims to help SIFCA review the E&S strategy and governance of the Group and its subsidiaries (ambitious action set out in the ESAP).

A 2nd technical assistance project was set up with SIFCA and FMO in 2020 (costs shared between the three parties) to conduct a feasibility study for the implementation of a scheme for small-scale planters.

The 3rd technical assistance project set up with SIFCA has implemented satellite monitoring of deforestation on the land of the Group’s concessions and in its supply basin.

Three technical assistance projects

   i/ Revision of the E&S strategy and governance: EUR 64k 

   ii/ Support for the implementation of a scheme for small-scale planters in Liberia: EUR 50k

   iii/ Support for the implementation of a satellite monitoring system: EUR 150k

It is estimated that over the next 5 years, the extension of the activities generated by this project will help create or maintain over 180,000 direct and indirect jobs in the 5 countries concerned (some 33,000 direct jobs and 150,000 indirect jobs, through smallholder family farms). The project will also facilitate technology and know-how transfers among local populations as SIFCA provides technical assistance to its partners throughout the value chain. 

This project will also contribute to regional and sectoral diversification and to the development of the local value chain. Indeed, the production will replace imports, allowing a price decrease of basic food products and supporting West Africa’s food self-sufficiency and security. 

Finally, SIFCA plays a role in the development of local infrastructure in the regions where it operates. Indeed, in the places where the company is established, it opens schools and medical facilities for its employees and their families, as well as for the smallholders working with the Group and neighboring communities.

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