ECOM AGROINDUSTRIAL CORPORATION LTD
Who is our client
Ecom Agroindustrial Corp. Ltd is a global commodity trading and processing company focusing on coffee, cotton, and cocoa in major producing and consuming countries. The company turnover in 2016 was in excess of USD 7.2 billion and handled 13.9 million bags of coffee, 2.2 million bales of cotton and 1.1 million tons of cocoa, making it a top tier participant in each of its core businesses. With over 160 years of market experience, Ecom is committed to responsible leadership within the soft commodities industry.
FMO intends to provide a USD 35 million long term facility for Ecom Agroindustrial. Ecom will use these funds to finance the capex investments and working capital needs of its cocoa processing operations in Nigeria. Overall, FMO continues to support Ecom’s inclusive business model that focuses on long term relationships with smallholder producers in emerging markets.
Why we fund this project
A third of the world's 7.3 billion people are smallholder farmers who produce nearly 70% of all food consumed worldwide on 60% of the planet’s arable land. This group of farmers is vital to satisfy the increased demand for food of our growing world population, yet they represent the majority of the poorest people on earth. Ecom works directly with cocoa, coffee and cotton farmers and supports them in becoming better farmers through training, certification and a strong focus on the off take of quality products. FMO works together with Ecom to develop and test KPI’s to be able to measure the impact of the company’s activities on smallholder livelihood. The proposed transaction will contribute to FMO's SDG's 2 (No hunger), 8 (Decent work and economic growth) and 13 (Climate action).
Environmental and social rationale
While all Performance Standards are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards. PS 1 – Assessment and Management of Environmental and Social Risks and Impacts PS 2 - Labor and working conditions PS 3 - Resource Efficiency and Pollution Prevention PS 4 – Community Health, Safety and Security PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources If FMO’s investment proceeds, FMO will periodically review the the project’s ongoing compliance with the Performance Standards. Issues related to PS5: Land Acquisition and Involuntary Resettlement, PS7: Indigenous Peoples (IP) and PS8: Cultural Heritage are not expected with this investment for the following reasons: no land will be required to be obtained (processing operations are already established); IPs are not impacted by the company’s operations; nor are matters of cultural heritage as processing plants are located in existing industrial areas and farmers supplying to the company have existing properties/fields and any development would be limited to replanting with higher producing coffee or cocoa plants.
|Date||Total FMO financing|
|12/11/2020||USD 60.00 MLN|
|11/29/2018||USD 10.00 MLN|
|12/21/2016||USD 20.00 MLN|
|12/22/2014||USD 25.00 MLN|
- Website client
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 35.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)