Yalelo Limited
Status: Completed 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
Yalelo Limited (“Yalelo”) is a fully integrated tilapia farm in Zambia. As such, they are involved in the whole supply chain: from inputs (feed), breeding, growing, distribution to retail. The company was founded in 2011 and is a leader in the nascent aquaculture sector in Sub-Saharan Africa. Yalelo is owned by management and Dutch impact investor Veris Investments.
What is our funding objective?
The proposed financing package will support the company in its next growth phase and allow it to further expand its operations across the value chain, improve efficiencies and reduce risks. This includes for example, opening new retail outlets, investing in new nets and improving bio-security.
Why do we fund this investment?
With this transaction FMO will support the creation of a leading regional aquaculture player, boosting local-for-local production and affordability of proteins. Yalelo has a positive impact on the local economy and job creation (it currently employs over 800 people) and is contributing to the development of the broader local aquaculture sector by providing smallholder tilapia farmers with inputs and training.
What is the Environmental and Social categorization rationale?
The operations have limited E&S impacts that are expected primarily to occur on site, except for the fish feed supply chain. IFC Performance Standards 1-4 and 6 are applicable to this project. PS5, PS7 and PS8 are considered not applicable to the company operations at its current stage. The project does not require land acquisition and there are no indigenous people within the area of influence who might be negatively affected by the operation. Also, the project does not pose risks to cultural heritage sites. Mitigation measures during the project ask for a continuous upgrade of the company’s management systems across all operational units, the elimination of risks associated with the water management in the Kariba lake, a supply chain management system for raw materials for feed production and a formalization of Yalelo’s community engagement plan.
More investments
| Date | Total FMO financing |
|---|---|
| 11/1/2022 | EUR 0.25 MLN |
| 12/19/2022 | EUR 0.10 MLN |
| 5/1/2024 | USD 2.50 MLN |
- Region
- Africa
- Country
- Zambia
- Sector
- Agribusiness, Food & Water
- Publication date
- 12/31/2018
- Effective date
- 4/12/2019
- End date
- 5/1/2024
- Total FMO financing
- USD 8.00 MLN
- Funding
- 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+