Project detail - SOCIETE SIFCA SA

Who is our customer

Established in 1964, the SIFCA group (“SIFCA”) has become a leading integrated agribusiness group in West Africa. The Ivory Coast-based group is involved in the production, processing, and distribution of palm oil, cane sugar and natural rubber. SIFCA employs over 33,000 direct employees in West Africa (Ivory Coast, Ghana, Nigeria, Liberia and Senegal) as well as procures agricultural produce from over 110,000 smallholders.

What is our funding objective?

A EUR 90 mln term facility will be provided to SIFCA by Proparco (Lead), FMO, and the bank Société Générale. The facility will be used to finance SIFCA’s investment plan and to refinance existing debt so the tenor of its assets and liabilities will be better matching.

Why do we fund this investment?

SIFCA is a well-known actor in the agro-industrial sector in West Africa. It is estimated that the project will support around 33,000 direct jobs and around 150,000 indirect jobs (through smallholders) in the 5 countries of operation within the next five years, including jobs created or maintained. The project will facilitate technology and know-how among local populations as SIFCA provides technical assistance to its partners in the value chain. This project will also contribute to regional and sectoral diversification and to local value chain development. The production will substitute imports, allowing a price decrease of basic food products and supporting West Africa’s food self-sufficiency and safety. Finally, SIFCA plays an important role in the development of local communities where the group is operating, as it provides schools and medical facilities for its employees and their families as well as for the smallholders cooperating with the company and the surrounding communities.

What is the Environmental and Social categorization rationale?

The E&S risk is considered to be high and categorized as A, since all PSs are triggered but PS 7. The company operates in several countries in West Africa where different risk situations apply. In none of these countries Indigenous People (PS 7) are involved with the company activities as established by independent consultants. Key risks are safe work and labor conditions, economic displacement and land rights, and biodiversity. These last risks are concentrated mainly in Liberia. The Environmental and Social Action Plan focuses on reinforcement of the organisation of environmental and social management at both corporate and subsidiary level, ensuring that timely risk identification and assessment including stakeholder engagement takes place resulting in proper risk management.