Announcement of IFC to Help Finance Nine Million Thirty Thousand US Dollars Agro Industry Project in Mali on May 10, 1982

IFC Press Release No. 82/26 Monday, May 10, 1982 IFC To Help Finance $9.3 million Agro Industry Project in Mali The IFC is helping finance a $9.3 million project in Mali with a $2.6 million equivalent investment in a new company, in Mali, Soci6tg Industrielle de Karitg S.A., which will produce sheanut for export. The project consists of setting up a modern extraction plant to be located in Banankoro, which will process 22,500 tpa of sheanut kernels into 8,660 tpa of sheanut butter. The company is expected to start commercial production in 1983. The sheanut butter will be exported to oil and fat processors in Europe and Japan, and is expected to generate foreign exchange benefits amounting approximately to $6.4 million annually. Equity financing for the project includes a MF 672 million investment from a Malian sponsor, Mr. Drissa Sangar6, the major shareholder in the project and a local transporter and trader in sheanuts for exports, and a minority investment from small Malian investors; a MF 298 million investment by the Vandemoortele Group of Belgium, the technical partner, a major oil and fat processor and trader. The Vandemoortele Group will be responsible for the implementation of the project and for providing operational and technical management of the plant. Additional equity financing will be provided by Socift6 Belge d'Investissement International, the German Development Corporation and IFC, each with an MF 298 million equity investment. Loan financing includes MF 298 million from Soci6td Belge d'Investisse- ment International; MF 166 million from DEG; and MF 1,159 million from IFC. In addition, the Socijt6 Internationale Financibre pour les Investissements et le D6veloppement en Afrique is considering a loan for MF 119 million. Suppliers' credit amounting to MF 1,740 million will complete the financial plan. The project is expected to yield substantial economic benefits for the country as it will process sheanuts, which grow wild in Mali, into sheanut butter, a vegetable fat in strong demand in developed countries for use in a variety of - 2 - confectionery and other applications. The company will employ 122 Malians and will provide additional income in the poorer rural areas where the nuts are collected. IFC played an essential role in developing the project which is consistent with the Malian Government's policies of promoting agro-industrial developments and encouraging private sector investments. The Corporation has been actively involved in structuring the project arrangements and in the negotiations between the local and foreign partners. [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0393.1