Project detail - SOCIETE SIFCA SA

SOCIETE SIFCA SA

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Who is our client

Established in 1964, the SIFCA group (“SIFCA”) has become a leading integrated agribusiness group in West Africa. The Ivory Coast-based group is involved in the production, processing, and distribution of palm oil, cane sugar and natural rubber. SIFCA employs over 33,000 direct employees in West Africa (Ivory Coast, Ghana, Nigeria, Liberia and Senegal) as well as procures agricultural produce from over 110,000 smallholders.

Funding objective

A EUR 90 mln term facility will be provided to SIFCA by Proparco (Lead), FMO, and the bank Société Générale. The facility will be used to finance SIFCA’s investment plan and to refinance existing debt so the tenor of its assets and liabilities will be better matching.

Why we fund this project

SIFCA is a well-known actor in the agro-industrial sector in West Africa. It is estimated that the project will support around 33,000 direct jobs and around 150,000 indirect jobs (through smallholders) in the 5 countries of operation within the next five years, including jobs created or maintained. The project will facilitate technology and know-how among local populations as SIFCA provides technical assistance to its partners in the value chain. This project will also contribute to regional and sectoral diversification and to local value chain development. The production will substitute imports, allowing a price decrease of basic food products and supporting West Africa’s food self-sufficiency and safety. Finally, SIFCA plays an important role in the development of local communities where the group is operating, as it provides schools and medical facilities for its employees and their families as well as for the smallholders cooperating with the company and the surrounding communities.

Environmental and social rationale

The E&S risk is considered to be high and categorized as A, since all PSs are triggered but PS 7. The company operates in several countries in West Africa where different risk situations apply. In none of these countries Indigenous People (PS 7) are involved with the company activities as established by independent consultants. Key risks are safe work and labor conditions, economic displacement and land rights, and biodiversity. These last risks are concentrated mainly in Liberia. The Environmental and Social Action Plan focuses on reinforcement of the organisation of environmental and social management at both corporate and subsidiary level, ensuring that timely risk identification and assessment including stakeholder engagement takes place resulting in proper risk management.

Website client
https://www.groupesifca.com/
Region
Africa
Country
Côte d'Ivoire
Sector
Agribusiness, Food & Water
Signing date
10/8/2018
Total FMO financing
EUR 35.00 MLN
Fund
FMO
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)
A