While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards 

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts 
PS 2 - Labor and Working Conditions 
PS 3 - Resource Efficiency and Pollution Prevention 

   The company owns office space, and warehousing on industrial zone, on the acquired land and do not manufacture any equipment; the latter is provided by recognized and established suppliers which are required to adhere to stringent internal quality requirements including that associated with the national regulatory authorities in the countries in which they operate. Thus PS4: Community Health and Safety does not apply to the project and neither does PS5: Land Acquisition and Involuntary Resettlement. The project and its activities will not impact biodiversity values, historical and/or cultural heritage sites, or indigenous people/community; therefore, PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS7: Indigenous Peoples or PS8: Cultural Heritage are also not applicable.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability.  The project is expected to have limited environmental and social impacts and none are expected to be significant. The company   owns both office space and warehouses. The operations mainly involve (i) installation and maintenance of equipment at client facilities; (ii) training of end user personnel and (iii) storage and distribution of pharmaceuticals and medical devices. Delivery of supplies is outsourced to contractors. Thus potential impacts and risks associated with activities are limited.

Key issues associated with the project include issues related to the management of human resources, provision of quality products to clients and disposal of old equipment.

       The company has no environmental and social management system but has an environmental policy approved by the board. Given the nature of the company operations, an extensive ESMS is not considered applicable to the project. The company has a Quality Management System tailored to their activities and local requirement.  This system is streamlined by the ISO 9001, a certifiable quality management system, which was renewed in June 2017.  While, at appraisal, only the Tanzania operations is accredited against ISO 9001, the company is rolling it out to other countries, with Uganda nearing accreditation.  The company should consider to develop and implement the  Good Distribution Practice for Medical Devices (GDPMDS) or  its equivalent,  ISO 13485:2003 Medical devices QMS .  The product quality is the responsibility of suppliers who are all reputable companies experienced in the manufacture of medical equipment, pharmaceuticals and medical devices.  Pyramid joined the United Nations Global Compact in 2015 – a United Nations initiative to encourage businesses worldwide to adopt sustainable and  socially responsible  policies, and to report on their implementation.

The company undertakes installation and / or maintenance of equipment on behalf of suppliers. The company technicians responsible for installation and maintenance receive training by the suppliers on the related product, installation and maintenance requirements as applicable in line with the manufacturers standards. In some instances, suppliers may commission third party audits to ensure equipment has been appropriately installed.  Both the pharmaceuticals and medical devices are supplied from the warehouse to the client; transportation services for supplies and equipment are contracted to third party specialized companies.

The company has a Chief Operations Officer who ensure the various offices comply with regulatory and supplier requirements and this individual reports to the Board of Directors.

The company has unarmed guards provided by a reputable third party contractor.  The guards are located at the office complexes and the warehouse.  The company has a warehouse and office access procedure which the guards are trained on and administer.

Each office and warehouse has an emergency response plan as per the requirements of the building in which they have leased and are located.  However, the plan is not formalized. As part of (ESAP Item #1), the company will develop and implement guidelines defining specific requirements for all offices and the warehouse so as to ensure employees are aware of how to respond in the event an emergency, and that there is at least one emergency training drill per year.    

 As of September 2017 the company had employed a total of 234 workers across all operations and of these 40% are women. The composition of the office typically includes, the sales and team marketing, which is approximately one third of all staff, with the rest being administrative, IT staff, technicians and management.  All workers are employed on a permanent or annual contract basis and have a formal written and signed contract which references the Group Human Resources (HR) policy and manual allied to the tenure of employment if applicable.  Other than those employees associated with logistics, there are no other workers providing ongoing support to the respective operations.

 All country offices have a HR designate, who work closely with the HR Manager.  There is a comprehensive HR Manual inclusive of policies and procedures covering various topics which apply to all offices. The individual offices then tailor the manual to ensure alignment with national requirements.  Procedures and policies defined in the Manual include that related to hiring and appointment, orientation, promotion and performance management, transfers, business ethics, training, allowances and the approach to company entertainment and travel, amongst others.

 Pyramid is an equal opportunity and non-discrimination employer as stated in the HR Manual whereby it is noted that the company believes in the fair treatment of all employees and potential employees. In addition, all applicants for employment are noted to be considered “regardless of race, color, religion, sex, marital status, age, national origin or any other considerations deemed inappropriate by local labor law”.

None of the employees are unionized in any of the offices, though it was noted the company does not prevent employees from being unionized should they so wish.  The HR Manual provides for grievance procedures, however, the current grievance mechanism does not have a mechanism for sending grievances anonymously. As part of (ESAP Item #2) the sponsor will develop and implement a formal system for employees to raise grievances anonymously, without the risk of reprisals, and according to other requirements of IFC’s Performance Standard 2. The grievance procedure will also articulate how the grievances will be handled and resolved; and outcomes communicated to all employees. This procedure will be made available to all existing and new employees, third-party staff, as part made part of HR Manual and other relevant documents.

The company follows local legal requirements regarding occupational health and safety. All employees are afforded company life and personal accident coverage and each country office offers medical support. To date, the company has not recorded any lost time injuries and none of the activities associated with Pyramid are considered to pose significant occupational health and safety risks.  The company has developed several procedures as part of OHS management.  These include; Emergency Evacuation Instructions; Health and Safety Report form and Disposal of Goods and Preservation.  As an enhancement, Pyramid will develop OHS procedure for technicians when working on client’s premises during installation and maintenance.  The procedure will include; quick identification of risks and hazards and preventive measures.  Pyramid has designated personnel in the office and warehouse who are trained on life and fire safety and first aid.  Portable fire suppression equipment is inspected and maintained regularly.

Pyramid has limited leverage over logistics companies which are engaged (mainly transport and customs clearance), however, as part of (ESAP Item #3), Pyramid will ensure that during renewal of contracts, the company will contractually require compliance by service providers with national labor laws and in line with IFC PS 2.

Pyramid procures only from reputable and established international suppliers and thus risks associated with the supply chain are considered to be minimal and adequately managed.  

Pyramid owns both office space and warehouse facilities within existing buildings and energy use is typically associated with lighting and the use of other electrical equipment like computers, photocopiers and air condition.  The company is connected to national grid but use a diesel generator during electricity outages. Based on the 2016 electricity usage of Tanzania offices and warehouses, the total kWh consumed is 136,605 which equates to 42.9 tons of CO 2 .  Electricity usage is projected to decline as the company has installed extensive roof insulation for the new offices and warehouse to reduce energy used in air conditioning.  The use of solar energy for the warehouse has been proposed to the board.

Potable water is provided in offices, whereas water for ablutions is provided through the local municipality.  All waste water from ablutions is disposed of via the municipal sewerage systems.

Solid waste generated by offices and warehouse is nonhazardous and typically includes waste paper and plastics, and limited scrap from the maintenance of small scale equipment.  These are collected by a third party contractor for disposal.  Maintenance of large equipment is undertaken on-site and the respective facilities assume responsibility for disposal of any scrap.

As at appraisal, Pyramid has not disposed any old / obsolete equipment.  In most cases, this is the responsibility of the facility and/or the supplier, however, as part of (ESAP Item #4) Pyramid will review its existing disposal of goods policy and develop a comprehensive protocol on disposal of old/obsolete equipment in line with the suppliers’ protocols and IFC requirements.  

 Pyramid is not involved in any stakeholder engagement beyond the direct company activities with suppliers and customers. Given that there are no identified impacts on communities, the current level of engagement is satisfactory. The company is planning to initiate corporate social responsibility programs aimed at increasing its visibility.  

Contact Person:  Abraham Okore

Company Name:   Pyramid Healthcare

Address:   1st floor TTCL Customer Service Center Building, Dar es salaam, Tanzania

Email:  aokore@pyramidpharma.com

Phone:  + 255 22 2775688

Fax : +255 22 27775740