A USD 21 million term facility has been provided to Aviv Tanzania Ltd. (ATL) by Standard Chartered Bank with a USD 14 million participation of FMO. ATL is in the process of developing a 2,000ha Greenfield coffee plantation in the Songea district of Tanzania to produce Arabica coffee berries, and process this into washed beans. ATL is a 100% subsidiary of Olam, which through this project intends to further vertically integrate its operations and hence secure quality input for its supply chain business.
The development impact is considered to be significant due to increased exports, sizeable job generation, and rural development through an increase in disposable income of the local population. FMO supported the project with the development of an ‘Integrated Water Resources Management’ plan (IWRM). With this plan, a holistic view will be applied to the water footprint assessment and management of the project, both up- and downstream. Olam intends to use the IWRM not just for the project, but as a blue print for all its upstream activities.
The funds will be used to acquire, clear and develop land. Furthermore, an irrigation system will be established, and wet and dry processing facilities build.
