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.
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.