Project detail - Solevo Holding B.V.

Who is our prospective customer?

Solevo is a leading Sub-Saharan African agricultural input and chemicals distributor. The company has a strong and longstanding on-the-ground presence of 50+ years in several countries in West Africa, where it became a market leader. Solevo boasts an extensive network of distribution sites, enabling the company to serve a geographically dispersed and diverse customer base and deliver products at scale.

What is our funding objective?

The purpose is to fund the company's general corporate purposes and permanent working capital needs.

Why do we want to fund this investment?

Solevo distributes much-needed agricultural inputs and chemicals in West Africa, a region with an acute food security challenge, considering the low fertilizer use rates. The company provides high-quality services to its clients with (i) value-added products via a large offer of blended inputs and (ii) route-to-market solutions differentiated by the type of customers. The company is deeply entrenched in its markets through its network of distribution sites spread across the regions where it operates. Solevo’s smallholder reach is estimated to be over 13 million farmers. Through distributors, a sizeable share of its sales goes to smallholders as end-clients, to whom Solevo also provides educational workshops and training on best practices for using its inputs to increase yields.

What is the Environmental and Social categorization rationale?

This investment is classified with E&S category B+ given the potential adverse environmental and social (E&S) risks and/or impacts that are potentially beyond site boundaries. However, 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 (e.g. 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. The Company is developing an E&S Management System at the corporate and subsidiary levels and has set up an Impact Roadmap that includes training for smallholder farmers.