40131
SOSAGRIN-IBS
Apr 20, 2018
Senegal
Africa
Jun 12, 2021
B - Limited
Active
Approved : Jun 21, 2018
Signed : Jun 29, 2018
Invested : Dec 21, 2020
Soft Drink
Agribusiness and Forestry
Regional Industry - MAS ME & Africa
The proposed investment is a senior debt financing of up to EUR 10 million to finance the expansion of Société Sénégalaise Agro-Industrielle (Sosagrin) the leading Dijon mustard company in Senegal/West Africa; and, Industrie des Boissons du Sénégal (IBS), a soft drink and juice company. Hereafter, these two companies are referred to the Sifaka Group.
The project includes: (i) acquiring and building a new greenfield production site; (ii) implementing a recycling program for cleaning and reconditioning used glass mustard jars; (iii) expanding installed capacity; and (iii) working capital requirements. The 27,000 m2 new project site, where all operations will be relocated, is situated in Diamniadio, about 30 minutes from Dakar. The site is in an industrial setting that will be acquired through a willing-buyer willing-seller transaction. There are no communities living in the vicinity of the site; and neither economic nor physical displacement will occur due to this land transaction.
The scope of IFC’s review included assessing the company’s capacity to oversee and monitor compliance of its operations with IFC’s Performance Standards (PS); the industry specific World Bank Group (WBG) Environmental, Health, and Safety (EHS) Guidelines on Food and Beverages Processing, and the WBG General EHS Guidelines (2007); and national environmental and social (E&S) regulatory requirements.
IFC’s E&S review took place November 14 and 15, 2017 and included a visit to the Group’s existing site in Dakar and to the new one in Diamniadio. The following IBS and Sosagrin staff were interviewed: General Manager, Human Resources Managers, Quality, Health and Safety Officers, and workers’ representatives. IFC also reviewed the following documentation: IBS quality policy; Sosagrin environmental and quality policy; ISO 9001 and 14001 certificates (expiring in September 2018); internal audit reports on environment, quality, health and safety; health and safety guidelines for visitors; emergency preparedness and response plan for Sosagrin; an environmental and social impact assessment for IBS; environmental audits of both companies; a list of environmental, quality, health and safety procedures; electricity and resource consumption statistics; accidents statistics; the Group’s third party contract template; training plans; and human resources policies (HR) (Règlement intérieur).