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. (“Niche”) is the largest independent cocoa processor in Ghana with a capacity of 60k ton. The company was founded in 2011 and is 100% Ghanaian owned. Niche sells its semi-finished products (cocoa liquor, butter, powder) to clients in Europe and Asia.
What is our funding objective?
The purpose of this intended USD 10 million transaction is to fund the construction of a new cocoa liquor line, a cocoa bean warehouse and investments in resource efficiency.
Why do we fund this investment?
Cocoa is one of Ghana’s key agricultural products. This project will lead to increased cocoa processing in Ghana and result in more value being captured locally. Furthermore, the expansion will boost local job creation. Niche is actively supporting cocoa farmers through cooperation agreements it has with two cooperatives to purchase certified beans. The project is a sustainable and climate friendly investment because Niche is an UTZ certified processor and part of FMO’s funds will be applied for resource efficiency purposes.
What is the Environmental and Social categorization rationale?
E&S category is B+ (high medium). IFC PS 1-4 and PS 6 are triggered. IFC PS 5 (land acquisition) is not applicable for the factory as the project is located at the existing Niche site. For the supply chain, E&S Due diligence did not identify land grabbing being associated with cocoa production. IFC 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 farmer level, which Niche mitigates through direct engagement with farmer cooperatives. This includes sponsorship of community service projects and paying premium prices to organically certified suppliers. The investment will enable Niche to expand its sourcing from farmers who implement preventive measures to eliminate environmental and social risks at the farm’s level.
More investments
| Date | Total FMO financing |
|---|---|
| 8/24/2022 | EUR 0.04 MLN |
| 11/30/2020 | EUR 9.00 MLN |
| 11/30/2020 | EUR 1.50 MLN |
- Website customer/investment
- http://www.nichecocoa.com
- Region
- Africa
- Country
- Ghana
- Sector
- Agribusiness, Food & Water
- Publication date
- 5/23/2018
- Effective date
- 7/18/2018
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
-
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+