Who is our client
Yalelo Limited (“Yalelo”) is a fully integrated tilapia farm in Zambia. As such, they are involved in the whole supply chain: from inputs (feed), breeding, growing, distribution to retail. The company was founded in 2011 and is a leader in the nascent aquaculture sector in Sub-Saharan Africa. Yalelo is owned by management and Dutch impact investor Veris Investments.
The proposed financing package will support the company in its next growth phase and allow it to further expand its operations across the value chain, improve efficiencies and reduce risks. This includes for example, opening new retail outlets, investing in new nets and improving bio-security.
Why we fund this project
With this transaction FMO will support the creation of a leading regional aquaculture player, boosting local-for-local production and affordability of proteins. Yalelo has a positive impact on the local economy and job creation (it currently employs over 800 people) and is contributing to the development of the broader local aquaculture sector by providing smallholder tilapia farmers with inputs and training.
Environmental and social rationale
The operations have limited E&S impacts that are expected primarily to occur on site, except for the fish feed supply chain. IFC Performance Standards 1-4 and 6 are applicable to this project. PS5, PS7 and PS8 are considered not applicable to the company operations at its current stage. The project does not require land acquisition and there are no indigenous people within the area of influence who might be negatively affected by the operation. Also, the project does not pose risks to cultural heritage sites. Mitigation measures during the project ask for a continuous upgrade of the company’s management systems across all operational units, the elimination of risks associated with the water management in the Kariba lake, a supply chain management system for raw materials for feed production and a formalization of Yalelo’s community engagement plan.
|Date||Total FMO financing|
|9/17/2020||EUR 0.10 MLN|
|4/12/2019||USD 8.00 MLN|
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 2.50 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)