UNITED EXPORTS LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
United Exports Limited is a vertically integrated company that grows, distributes and sells high quality blueberries originating from South Africa and Zambia.
What is our funding objective?
The financing package is part of a EUR 14mln IFC-led facility and will support the climate adaptation CAPEX (frost mitigation) and expansion of a new blueberry farm in South Africa.
Why do we fund this investment?
The transaction will create 400 full-time employees, and more than 2,000 part-time employees (largely women) and 30 commercial farm out-growers (to whom United Exports provides technical assistance to disseminate best practices) in high unemployment areas in South Africa. The farm expansion (part of the use of funds of the proposed loan) may create 470 incremental full-time and part-time employment at full business ramp-up. Moreover, this investment will support the emergence of South Africa as a new blueberry hub and create a new export industry for the country.
What is the Environmental and Social categorization rationale?
FMO’s environmental and social due diligence indicates that the investment is E&S category B and will have impact which must be managed in a manner consistent with the following Performance Standards: 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. FMO will periodically review the project’s ongoing compliance with the Performance Standards. The Company is operating in a sustainable manner and is implementing Best Practices in the development of the farms, water usage and working conditions. The other Performance Standards (PS 4, 5, 6, 7 and 8) are not applicable because there has been neither physical nor economic displacement for the land acquisition of the farm land based on - willing buyer, willing seller arrangements (PS 5), nor any impact on biodiversity (PS 6) as only existing farms will be selected and indigenous people (PS 7) or cultural heritages (PS 8).
More investments
| Date | Total FMO financing |
|---|---|
| 12/13/2022 | EUR 0.05 MLN |
| 10/23/2020 | EUR 1.50 MLN |
| 1/30/2019 | EUR 10.00 MLN |
- Region
- Africa
- Country
- South Africa
- Sector
- Agribusiness, Food & Water
- Publication date
- 7/11/2022
- Effective date
- 9/29/2022
- Total FMO financing
- EUR 7.00 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