NICHE COCOA INDUSTRY LIMITED
Who is our client
Niche Cocoa Industry, Ltd. (“Niche”) is the largest independent cocoa processor in Ghana with a capacity of 60k ton. The company was founded in 2011 and is 100% Ghanaian owned. Niche sells its semi-finished products (cocoa liquor, butter, powder) to clients in Europe and Asia.
The purpose of this intended USD 10 million transaction is to fund the construction of a new cocoa liquor line, a cocoa bean warehouse and investments in resource efficiency.
Why we fund this project
Cocoa is one of Ghana’s key agricultural products. This project will lead to increased cocoa processing in Ghana and result in more value being captured locally. Furthermore, the expansion will boost local job creation. Niche is actively supporting cocoa farmers through cooperation agreements it has with two cooperatives to purchase certified beans. The project is a sustainable and climate friendly investment because Niche is an UTZ certified processor and part of FMO’s funds will be applied for resource efficiency purposes.
Environmental and social rationale
E&S category is B+ (high medium). IFC PS 1-4 and PS 6 are triggered. IFC PS 5 (land acquisition) is not applicable for the factory as the project is located at the existing Niche site. For the supply chain, E&S Due diligence did not identify land grabbing being associated with cocoa production. IFC PS 7 (indigenous people) and PS 8 (cultural heritage) are not applicable, as no indigenous people are impacted by the project, and no cultural sites are located in the vicinity. Niche runs a comprehensive Environmental and Social Management System at the factory. Core E&S risks are associated with the cocoa bean production at the farmer level, which Niche mitigates through direct engagement with farmer cooperatives. This includes sponsorship of community service projects and paying premium prices to organically certified suppliers. The investment will enable Niche to expand its sourcing from farmers who implement preventive measures to eliminate environmental and social risks at the farm’s level.
|Date||Total FMO financing|
|12/14/2020||EUR 0.04 MLN|
|11/30/2020||EUR 1.50 MLN|
|11/30/2020||EUR 9.00 MLN|
- Website client
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 10.00 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)