Project detail - NICHE CONFECTIONERY LIMITED

NICHE CONFECTIONERY LIMITED

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Who is our client

Niche Confectionery Ltd. is a Ghanaian producer of chocolate products. Niche Confectionery is owned by Niche Cocoa Industry Ltd., the largest independent cocoa processor in Ghana with a capacity of 90.000 tons per year. The group was founded in 2011 and is 100% Ghanaian owned. Niche Confectionery produces finished chocolate products such as bars, spreads, and drinks for the local market as well as export.

Funding objective

The EUR 8mln facility will be used to purchase an instant powder line, a ready-to-drink line, and equipment for producing chocolate spreads.

Why we fund this project

Cocoa is Ghana’s most important agricultural product. However, traditionally, a high percentage of cocoa beans is exported with low- to no value added locally. Supported by this investment, Niche will expand its range of activities to cover the entire value chain – from bean-to-bar – within Ghana. This will lead to further employment, technical know-how, and value addition within the cocoa sector, all of which contribute to the country’s socio-economic development.

Environmental and social rationale

E&S category is B+ (high medium). Niche runs a comprehensive environmental and social management system at the factory. Core E&S risks are associated with cocoa bean production at the farmer level, which Niche can partially mitigate through direct engagement with organically certified farmer cooperatives. This FMO facility will enable Niche to expand its supply chain policy to conventional cocoa producers. IFC PS 1-4 and PS 6 are triggered. IFC PS 5 (land acquisition) does not apply because the project is located at the existing Niche manufacturing site, with no land acquisition in the cocoa producing areas. IFC PS 7 (indigenous people) and PS 8 (cultural heritage) are not applicable because no indigenous people are impacted by the project, and no cultural sites are located in the vicinity of Niche’s production facility.

Region
Africa
Country
Ghana
Sector
Agribusiness, Food & Water
Signing date
9/16/2019
Total FMO financing
EUR 8.00 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)
B+