UNITED EXPORTS LIMITED
Who is our client
Mbiza Trading Ltd. (“Mbiza”) is a vertically integrated company that grows, distributes and sells high quality blueberries originating from South Africa and Zambia.
The proposed financing package is part of an EUR 30mln IFC-led facility and will support the expansion of two new blueberry farms and construction of a new packing facility in South Africa.
Why we fund this project
The proposed transaction will create more than 200 new permanent jobs and 2,000 new seasonal jobs in high unemployment areas in South Africa. The farmland expansion will be a climate friendly investment and include a.o. drip-irrigation, fertigation, soil analysis and variable speed pumps to ensure water efficiency and resource efficiency. Moreover, this investment will support the emergence of South Africa as a new blueberry hub and create a new export industry for the country.
Environmental and social rationale
FMO’s environmental and social due diligence indicates that the investment will have impact 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. If FMO’s investment proceeds, FMO will periodically review the project’s ongoing compliance with the Performance Standards. The Company is operating in a sustainable manner and is implementing Best Practices in the development of the farms, water usage and working conditions. The other Performance Standards (PS 4, 5, 6, 7 and 8) are not applicable because there has been neither physical nor economic displacement for the land acquisition of the farm land based on - willing buyer, willing seller arrangements (PS 5), nor any impact on biodiversity (PS 6) as only existing farms will be selected and indigenous people (PS 7) or cultural heritages (PS 8).
|Date||Total FMO financing|
|10/23/2020||EUR 1.50 MLN|
- South Africa
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- EUR 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)