Project detail - CHO COMPANY LTD.


Status: Proposed investment
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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.

In case of questions

This proposed investment is online for 30 days. In case of questions, please contact

Who is our prospective client?

Established in 1996 as an olive oil bulk trader in Sfax, Tunisia, CHO Company (“CHO” or the “Company”) is currently one of the largest Tunisian olive oil producers, bottlers and exporters. CHO was created by three entrepreneurs, Mr. Abdelaziz Makhloufi, Mr. Moncef Rekik, and Mr. Mohamed Tounsi. The original founders still own most of the shares of the Company. CHO Group is one of the largest olive oil milling operation in Tunisia and has vertically integrated operations, from orchards and olive fields to mills, refineries, pomace extraction units, accredited laboratory, cosmetics and detergents production units, and state of the art packaging facilities.

What is the funding objective?

FMO intends to participate for up to EUR 12 million in a long-term facility led by IFC. The proposed Project will finance permanent working capital and capital expenditures to support the Company’s strategy to increase its sales of bottled olive oil.

Why do we want to fund this project?

CHO's overall goals through this Project are its contribution to preserving linkages with farmers, maintaining jobs, and domestic value addition. The Project's contribution to market resilience will be through building capacity along the supply chain, demonstrating improved business practices to other sector players, and enabling positive spillovers across the sector by maintaining operations during a tumultuous economic period. The investment also contributes to financial additionality through long-term tenor and currency.

Environmental and social rationale

CHO is a B+ client. FMO’s preliminary environmental and social due diligence indicates that the project may have impacts which must be managed in a manner consistent with the following IFC Performance Standards: PS 1: Assessment and Management of Environmental and Social Risks and Impacts; PS 2: Labour and working conditions; PS 3: Resource Efficiency and Pollution Prevention; PS 4: Community Health, Safety and Security and PS 6 Biodiversity Conservation. PS 5 Land Acquisition and Involuntary Resettlement is not triggered since the investment does not imply the acquisition of land or displacement people (physically or economically). PS 7 Indigenous People and PS 8 Cultural Heritage are not triggered due to the absence of indigenous people affected directly or indirectly by the project, or tangible/intangible cultural heritage affected by the project. The project is designed to avoid, minimize and manage E&S risks and impacts of the Company’s operations in compliance with Tunisian legal and regulatory requirements, IFC’s Performance Standards (PSs) and applicable World Bank Group (WBG) General and sector-specific (Vegetable Oil Production and Processing) Environmental, Health and Safety (EHS) Guidelines. FMO will periodically review the project’s compliance with the Performance Standards.

Agribusiness, Food & Water
Publication date
Total FMO financing
EUR 12.00 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)