Project detail - HPW FRESH & DRY GHANA

HPW FRESH & DRY GHANA

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Who is our client

HPW is a responsible producer of tropical dried fruits and fruit snacks headquartered in Switzerland. Founded in 1997, the Company expanded from a traditional fresh fruit supplier serving Switzerland to become one of the leading dried fruit producers in West Africa supplying high quality tropical snacks to the international market. The Company has 2 local subsidiaries, HPW Fresh & Dry in Ghana and Ivory Coast, together employing ~2,000 local employees and directly / indirectly impacting ~1,500 smallholder farmers.

Funding objective

FMO’s investment loan to HPW Fresh & Dry Ltd is to support its working capital and expansion of factory in Ghana to meet the increasing demand from international markets for dried fruits.

Why we fund this project

HPW Fresh & Dry is the largest tropical dried fruits processor in West Africa. HPW cooperates closely with local farmers and plays an important role to improve the standard of living of smallholder farmers. It is also the most important employer in the region, with FMO’s investment in the project, in the short term ~250 new jobs will be created locally, adding further value for the economy. The financing will also contribute to reduction of food waste, which is minimized by utilizing fresh fruits that are unnecessarily wasted or discarded by retailers (because of undesirable appearance) into healthy dried fruits and snacks. The transaction qualifies as inclusive (given the technical support provided to smallholders) and green (HPW has a sustainable and circular business model).

Environmental and social rationale

E&S categorization B+, FMO’s environmental and social due diligence indicates that the investment will have impact which must be managed in a manner consistent with the following 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; and PS 4 – Community Health, Safety and Security. Additionally, IFC Performance Standards 2 and 6 are indirectly triggered through the Company’s supply chain. IFC PS 5, 7 and 8 are not considered to be applicable as HPW Ghana Facility is located on land acquired through a willing buyer willing seller transaction that did not involve involuntary resettlement, and no indigenous people nor cultural sites were identified in the area of influence of the project.

Region
Africa
Country
Ghana
Sector
Agribusiness, Food & Water
Signing date
7/6/2022
Total FMO financing
EUR 4.00 MLN
Fund
Building Prospects
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+