Project detail - ARASA FZE

Who is our customer

Arasa FZE is a UAE-registered subsidiary of Tiryaki Group. Arasa, directly or via two subsidiaries registered in Ghana (“Arasa Ghana”) and Togo (“Arasa Togo”) originates, processes and exports non-GMO and organic agricultural commodities, farm products and processing by-products from the countries of West Africa, predominantly from Ghana, Benin and Togo but also from Burkina Faso, Nigeria, Ivory Coast, Liberia and Sierra Leone

What is our funding objective?

FMO plans to provide working capital (WC) finance. Arasa will buy, process and export locally-sourced agri-commodities and byproducts. A small part of the loan will be used to refinance a short-term loan taken in anticipation of FMO’s Loan.

Why do we fund this investment?

Tiryaki Group is able to offer higher prices for the products sourced by Arasa in West Africa because it has outlets to sell non-GMO and Organic products for their full value. The higher prices trickle upstream to West Africa farmers to reduce poverty in rural areas.

What is the Environmental and Social categorization rationale?

This concerns an E&S B+ categorized investment, as the company engages in the sourcing of raw agricultural product and by-products from the processing of tropical commodities. These activities come with potential adverse environmental or social impacts that extend site boundaries and might in part be irreversible, although they can be prevented and addressed through relevant mitigation measures. E&S characteristics of this specific investment include sourcing expansion storing and pre-export processing in Ghana and other west African countries. The E&S context include potential environmental and social risks in their supply chain -not limited to child labor, poor working conditions, forced labor, impact on ecosystem services, deforestation, and additional pressure on climate vulnerabilities. ESG performances will be focused on the assessment and management of these risks by adopting policies, risk assessments, monitoring mechanisms and local partnerships to reduce the company’s risk exposure and to drive positive impact. FMO’s environmental and social due diligence indicates that the investment will have impact which must be managed in a manner consistent with the following IFC Performance Standards in particular: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts PS 2 – Labor and working conditions, PS 3– Resource Efficiency and Pollution Prevention, PS4– Community Health, Safety, and Security, and PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources. Risk appraisal have not identified potential impacts related to the Performance Standards (PS5, PS7, and 8). The company’s operations are in industrial zones, no land acquisitions are part of this investment, and no impact on indigenous communities, nor cultural heritages has been identified.