Zambeef Products PLC
Status: Investment in contracting phaseWhy 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 prospective customer?
Zambeef is the largest integrated agribusiness company in Zambia, involved in the primary production of maize, soyabeans and wheat, processing, distribution and retailing of animal feed, flour, poultry and other animal proteins throughout Zambia and the region.
What is our funding objective?
FMO is taking an unfunded risk participation in a revolving working capital facility with Standard Chartered Bank (“SCB”), this will allow SCB to increase the size of its facility with the same amount. The purpose of this facility is financing Zambeef’s increasing production of wheat, soya beans and maize.
Why do we want to fund this investment?
Zambia ranks among the 46 poorest countries globally, therefore this investment in Zambeef qualifies for 100% as a Reducing Inequalities label. Zambeef plays a significant role in enhancing food security in Zambia and the broader region by supplying locally produced staples and proteins crucial for the growing population. Through an unfunded risk participation, FMO will assist Zambeef in accessing additional funding to bolster its Cropping division, thereby boosting the entire Group's production. This will encourage local-for-local production in Zambia and increase food security.
What is the Environmental and Social categorization rationale?
The FMO E&S Category is B+. The E&S risks and impacts with this project are limited, site-specific, and can likely be readily addressed through generally accepted mitigation measures. E&S risks associated with Zambeef’s operations will be present in the supply chain, primary production (cropping), Agri-processing and distribution. The following IFC PSs and anticipated risks are considered relevant: PS1 (E&S management systems/ legal compliance), PS2 (Child/ forced labor; Worker Health &Safety), PS 3 (Climate risk, GHG emissions, water use, waste management, HCS), PS 4 (Transportation; Food Safety) and PS 6 (Impact on biodiversity; Animal Welfare). Raw materials are sourced from both Zambeef’s primary production operations and third parties. Supply chain risks associated with labor, biodiversity and Animal Welfare will also apply. PS5 is not relevant as no plans for expansion requiring land purchases have been identified. PS7: Indigenous people and PS8: Cultural Heritage are not relevant.
More investments
| Date | Total FMO financing |
|---|---|
| 4/29/2022 | USD 7.50 MLN |
| 4/29/2022 | USD 5.00 MLN |
- Region
- Africa
- Country
- Zambia
- Sector
- Agribusiness, Food & Water
- Publication date
- 1/10/2024
- Deadline for feedback
- 3/10/2024
- 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+