Announcement of IFC to Assist Sugar Industry in Cameroon on July 15, 1982

International Finance Coporation 'A IFC Press Release No. 83/1 Thursday, July 15, 1982 IFC To Assist Sugar Industry in Cameroon The International Finance Corporation is lending DM 3.5 million ($1.5 million) to assist the $6.3 million equivalent rehabilitation project of a 27,500 metric tons per annum sugar complex in Cameroon, financed by local banks and export credits. Located in Mbandjock, the project will be completed by June 1984 and will enable Societe Sucriere du Cameroun to maintain sugar production by replant- ing 1,400 hectares of land, introducing new cane varieties with higher sucrose content and replacing old factory machinery with modern equipment. Societe d'Organisation de Management et de Developpement des Industries Alimentaires et Agricoles, a French company which specializes in agribusiness ventures in Africa and a major shareholder in SOSUCAM, is providing management services to the Company. A local bank loan of $2.6 million equivalent will be made by a pool of seven local banks including Societe Camerounaise de Banque, Banque Internationale pour 1'Afrique Occidentale - Cameroun, Banque Camerounaise de Developpement, Societe Generale de Banques au Cameroun, Banque Internationale pour le Commerce et 1'Industrie du Cameroun, Chase Bank Cameroun and Paribas Cameroun. A French purchaser's credit amounting to CFAF 150 million equivalent will cover the purchase of pans and mixers imported from France and will be granted by Barque de Paris et des Pays Bas. Cash generation amounting to $1.6 million equivalent will complete the financial plan. The rehabilitation program is urgently needed to prevent a decline in sugar production and, because the basic infrastructure is in place, will have a high rate of return. In addition, it will help maintain employment of 1,000 permanent and 900 seasonal workers and save substantial foreign exchange needed to import sugar. [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