Announcement of IFC Support of Agribusiness Project in Cameroon August 2, 1985

International Finance Cor-poraion FOR RELEASE: Friday, August 2, 1985 8 C Monique Amaudry Press Release No. 86/6 (202) 676-9331 IFC SUPPORTS AGRIBUSINESS PROJECT IN CAMEROON The International Finance Corporation is investing $2.8 million in a $9.7 million palm oil plantation expansion project in Cameroon. IFC is an affiliate of the World Bank and the world's leading multilateral agency that finances private sector business in developing countries. The project will accelerate the investment program of Societe des Palmeraies de la Ferme Suisse, S.A. (SPFS, the Company) by expanding the existing oil palm plantation located 25 km south of Edea, in southwestern Cameroon, to 2,800 ha from 2,350 ha, to exploit the remaining good land available and complete the capacity of the oil mill. Project completion is forecast for June 1990; output will be sold on the local market with the exception of kernels, which will be exported or sold to a local soap manufacturing firm at export prices. The project includes land clearing and nursery preparation, maintenance and upkeep of new plantings, purchase of vehicles and equipment, construction of roads, houses and social amenities and some additions to the existing oil mill. Financing provided by IFC includes a French Franc 13 million loan ($1.62 million equivalent) and an equity investment of CFA 225 million (about $0.56 million equivalent). Other equity financing will be provided by Societe Internationale de Plantations d'Heveas (from SOFFO group, the project's main sponsor, which has extensive investments in rubber, coffee and palm oil in West Africa and international activities in agro-industrial engineering in tropical areas), and by DEG, the German Development Agency. - 2 - Loan financing, in addition to IFC's, includes $1.89 million from Caisse Centrale de Cooperation Economique, the French development agency, through Banque Camerounaise de Developpement, a local development bank. IFC's role was crucial in defining the final project scope, structuring the financial package and obtaining additional sources of financing. The project is consistent with the Government's objectives for the agricultural sector, emphasizing growth through diversified export and efficient import substitution projects based on the development of the country's natural resources. IFC's portfolio in Cameroon includes eight outstanding investments in non-ferrous metal, shoes, food and food processing, and glass containers.