Project detail - ADP III Holding 9 L.P.

Who is our customer

Solevo is a leading distributor of Agricultural inputs (fertilizers and crop protection products) and specialty chemicals mainly in West Africa (its largest markets include Ivory Coast and Cameroon). The company has approximately 400 employees and is well entrenched in its markets, having operated in the African continent for over 70 years. Agricultural inputs are distributed under the company’s own brand and sold to smallholder distributors, wholesalers and retailers, who in turn sell these products to smallholder farmers. The company also engages directly with smallholder farmers through technical support, and training initiatives (covering, amongst other things, safe use of product and good agricultural practices).

What is our funding objective?

FMO co-invested alongside African Development Partners III (ADP III), managed by Development Partners International (“DPI") and co-investors to acquire a controlling equity stake in Solevo Holding B.V. Through this investment, the consortium is aiming to (i) further strengthen ESG practices, (ii) support the company with expanding smallholder farmer training initiatives, and (iii) explore other sustainability-related initiatives.

Why do we fund this investment?

The use of agricultural inputs will play an important role in contributing to the production growth required to promote food security in Africa over the long term. Plant nutrition products (fertilizers) support the maintenance and increase of crop yields, whilst crop protection products protect smallholder farmers from material yield destruction and associated livelihood impacts. Other specialty chemical products distributed by the company support key industries in the targeted emerging markets, such as clean drinking water. When executed responsibly, and with due care for the environment and local communities, the offered products can thus support the development of local economies whilst also contributing to food security.

What is the Environmental and Social categorization rationale?

This concerns a category B+ investment based on the EDFI Environmental & Social (E&S) categorization, given the potential adverse E&S risks and/or impacts that are potentially beyond site boundaries, although they can be addressed through relevant mitigation measures. Key E&S risks relate to the context/regions of operations, environmental protection and health & safety during the business activities (handling, storage, transportation of hazardous materials), and the downstream use of chemical products (by farmers). The following IFC Performance Standards are triggered: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labour and Working Conditions, PS3: Resource Efficiency and Pollution Prevention, PS4: Community Health, Safety and Security, and PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. Together with like-minded investors, FMO has prepared an impact roadmap to support the further strengthening of the E&S risk controls whilst exploring opportunities to add value beyond the core business activities, such as farmer training and support.