Project detail - HABESHA BREWERIES SHARE COMPANY

HABESHA BREWERIES SHARE COMPANY

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Habesha Breweries Share Company (“Habesha”) is one of the leading Ethiopian brewing companies. Habesha was initiated by a group of local Ethiopian investors in 2009. The company is currently owned by Swinkels Family Brewers Holding N.V. (60%), 8,000 local shareholders (30%), and Linssen Participations B.V. (10%).

What is our funding objective?

The proposed financing package is part of an EUR 50mln IFC-led facility and will support the company’s EUR 118 million capacity expansion program which will be complemented by an advisory services program to support local barley farmers in the country.

Why do we fund this investment?

The project will increase the productivity, access to markets, and food security for 15,000 barley farmers. With the support of the advisory services program, Habesha hopes to reach 14,000 additional farmers through a system of forward contracting with cooperative unions and a linked system of input distribution. Through the project 500 direct, full-time jobs are expected to be created. Finally, the project will strengthen the integration of the Ethiopian malt-barley supply chain.

What is the Environmental and Social categorization rationale?

This is a category B+ project according to FMO E&S Categorization. The project is expected to generate limited and site-specific E&S impacts. These can be avoided or mitigated through implementing a time-bound Environmental and Social Action Plan. Material E&S risks and impacts include those associated with the need for additional raw water to allow for the expansion in production and to ensure that by consuming that water Habesha does not adversely impact other water users. Also, there is a need to ensure that either the physical or economical resettlement of the four households from the land required for the plant expansion is undertaken according to the requirements of the IFC performance standards and that the livelihoods of those impacted are restored to at least the level they were before being impacted. Applicable IFC PS are 1-4 and 5. IFC PS 6, 7 and 8 are not applicable as the land used to build the brewery is already cultivated for a long time. The brewery is not involved in primary production of agricultural commodities (i.e. there are no impacts to biodiversity and it buys its barley from other growers). Neither any cultural heritage site can be found on the land required for construction nor will there be any on the additional land that is required for the expansion. No Indigenous Peoples are found within the project’s area of influence.

More investments

Date Total FMO financing
6/29/2020 EUR 0.14 MLN
Website customer/investment
http://www.ifc.org
Region
Africa
Country
Ethiopia
Sector
Agribusiness, Food & Water
Publication date
12/31/2018
Effective date
12/20/2019
Total FMO financing
EUR 18.00 MLN
Funding
FMO NV
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)
B+