NICHE COCOA INDUSTRY LIMITED
Status: Approved investmentWhy disclosure?
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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
Niche Cocoa Industry Ltd. is the largest independent cocoa processor in Ghana with a capacity of 90,000 tons per year and the owner of Niche Confectionery Ltd., a Ghanaian producer of cocoa confectionery products. The group was founded in 2011 and is 100% Ghanaian owned. Niche Confectionery produces finished chocolate goods such as bars, spreads, and drinks for the local market as well as for export.
What is our funding objective?
FMO's funding will go to both Niche Cocoa Industry Ltd. and Niche Confectionery Ltd. The EUR 26.5mln facility consists of an EUR 18.5mln committed tranche that will be used to (i) purchase solar panels, (ii) acquire chocolate manufacturing equipment and (iii) pre-finance cocoa cooperatives under Niche’s sustainable cocoa sourcing program as well as an EUR 8mln uncommitted tranche for permanent working capital.
Why do we fund this investment?
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. Furthermore, we will support the company in developing its own sustainable cocoa sourcing program. Finally, the solar panels will provide Niche with a green power source and substantially reduce its electricity needs from the grid.
What is the Environmental and Social categorization rationale?
E&S category is B+ (high medium). IFC Performance Standards (PS) 1-4 and 6 are triggered. PS 5 (land acquisition) is not applicable for the factory as the project is located at an existing Niche site. For the supply chain, E&S due diligence did not identify any land grabbing associated with cocoa production. PS 7 (indigenous people) and PS 8 (cultural heritage) are not applicable, as no indigenous people are impacted by the project and no cultural sites are located in the vicinity. Niche runs a comprehensive Environmental and Social Management System at the factory. Core E&S risks are associated with the cocoa bean production at the farm level, which Niche mitigates through direct engagement with farmer cooperatives via the sustainable cocoa sourcing program. This includes cocoa bean traceability, sponsorship of community service projects and paying premium prices to sustainable cocoa smallholders. The investment will enable Niche to expand its engagement with cocoa farmers to eliminate environmental and social risks at the farm level and to introduce renewable energy use at the factory.
More investments
| Date | Total FMO financing |
|---|---|
| 8/24/2022 | EUR 0.04 MLN |
| 11/30/2020 | EUR 1.50 MLN |
| 7/18/2018 | USD 10.00 MLN |
- Website customer/investment
- http://www.nichecocoa.com
- Region
- Africa
- Country
- Ghana
- Sector
- Agribusiness, Food & Water
- Publication date
- 8/19/2020
- Effective date
- 11/30/2020
- Total FMO financing
- EUR 9.00 MLN
- Funding
- FMO NV
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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+