Announcement of IFC Assists Fishing Industry in Madagascar on September 26, 1983

1818 H Street, N.W. International Finance· Corporation Washington, D.C. 2043'3, U.S.A. FOR RELEASE: September 26, 1983 CONTACT: Monique Amaudry (202) 676-0578 Press Release No. 84/8 IFC ASSISTS FISHING INDUSTRY IN MADAGASCAR The Intern:Fitional Finance Corporation (rFC) is helping r'inance the modernization and expa~sion of a $10.~4 million major shrimp fishery project I". with the participation of the European Investment Bank and Caisse Centrale de Coop~ration Economique (France). The project, which is expected to be completed by the end of 1984, will I' A ·,Jimprove the shrimp production of Pecheries de Nossi--Be (RNB, the Company), by about 35 percent by providing,among other equipment,four new vessels to allow the Company to exploit the attractive new shrimp ground off the southwest coast. Shrimps rank fourth among the country's export products and the project will provide a much needed increase in the country's foreign exchange earnings. "This project is a good example of IFC's special role as a catalyst in helping find constructive solutions to difficult investment problems in member countries," said. Mr. Azam Aliza!~ IFC Director, Depa~:;tment of Investments, Africa II. IFC is making a $2.57 million loan to the Company and investing $0.13 million equivalent in the share capital. In addition, the European Investment Bank is lending (f4.50 million equivalent and Caisse Centrale de Cooperation Economique, $1. 24 million for the project. The Company, which is presently owned mainly by La Cotonniere d 'Antsif~~be (Cotona), one of the country's two laTgest textile mills, is about to be restruc- tured, with 45. 68·~percent of the share capital to. be held by the 'povernment of 1 Madagascar,' 41. 23 percent by Groupe Socota, S .A., the Luxembourgt\a~ed holding company of the Ismail family, a .fourth generation family of investors well known in ?'t1i,cl·agascar, 2. 6 7 percent by private Malagasy shareholders and 10. 42 percent 1 "<~ by IFC. ~n ? - 2 - Furthermore, PNB proposes t~ enter a management and technical assistance agreement and an engineerin'Ev~md project management agreement with Iproma, a (( 0 London-ba,sed company of th~ Socota group which specializes in promoting and managing industrial projects. "We are 'very happy to contribu~~;?'~~ven; in a small way, to the economic J):/ development of Madagascar through thi,~-/''project and we hope it will help promote renewed confidence among investors in the country's future," Mr. Alizai added. ,o f/