PROJECT

Projects

Environmental & Social Review Summary

Project Number

35938

Company Name

AFRIFLORA

Date ESRS Disclosed

Mar 2, 2015

Country

Ethiopia

Region

Africa

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Apr 3, 2015
Signed : Apr 13, 2015
Invested : May 13, 2015

Sector

Horticultural Products (Flowers)

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description

The proposed investment consists of an IFC and MCPP senior secured €90 million (US$112 million equivalent) loan to Afriflora Group (“Afriflora” or the “Group”). Afriflora is a family-run manufacturer and marketer of cut-rose products based in Ethiopia. The Group’s main operation is located in Ziway, near Lake Ziway, and consists of approximately 260 hectares of greenhouses. A second, 25 hectare farm is located 60km away near the village of Koka. A new proposed farm near Adami Tullu, less than 5km away from the Group’s Ziway operations, currently stands at approximately 40 hectares, which management hopes to expand by an additional 135 hectares. The Group has approximately 8,000 employees and mainly serves the European Flower market.

Overview of IFC's Scope of Review

IFC visited the company’s irrigated rose growing operations in Ziway, Adamitulu and Blen Farm, all located in the Oromia Region of Ethiopia south of the capital of Addis Ababa. These operations include nurseries, large-scale growing operations (under greenhouses), packing facilities, and associated infrastructure.
IFC’s appraisal considered environmental and social management plans for the Project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the Project is expected to be designed and operated in accordance with Performance Standards objectives

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan