PROJECT

Projects

Environmental & Social Review Summary

Project Number

46764

Company Name

SOCIETE INDUSTRIELLE AGRO-ALIMENTAIRE S.A

Date ESRS Disclosed

Nov 19, 2022

Country

Senegal

Region

Africa

Last Updated Date

Mar 22, 2023

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Dec 22, 2022
Signed : Dec 23, 2022
Invested : Mar 20, 2023

Sector

Soft Drink

Industry

Agribusiness and Forestry

Department

Regional Industry - MAS Africa

Project Description

    

Société Sénégalaise Industrielle Agroalimentaire (SIAGRO https://kirene-groupe.com/en/) (“Kirene” or “the Company”) is a leading beverage company founded in 2001. Kirene’s production facility has a footprint of 14 hectares (ha) in a peri-urban area, in the municipality of Diass, 45 km east of Dakar in the Thies region. The company produces and distributes four products, namely (i) Ultra-high temperature (UHT) processing milk under licensing of Candia from France, (ii) natural mineral water,  (iii) fruit juice from concentrate, and (iv) since 2020 carbonated soft drinks (CSD) under licensing from PepsiCo, following on a previous partnership with ‘The Coca Cola Company’. The products are distributed through a network of 200 small and medium enterprises (SMEs) and semi-wholesalers across Senegal.

The proposed IFC loan is up to EUR €6.8 million to support the expansion and modernization of Kirene’s operations. This includes (i) the acquisition of two water and juice/milk production lines and (ii) the upgrade of existing equipment and facilities in view of EDGE Green Building certification, including the acquisition of solar panels via an energy supply contract with a photovoltaic solar solutions service provider. The expansion (the “Project”) will take place within the existing premises. The water line will contribute 1,200 kiloliters (kl) to Kirene’s annual bottled water production while the juice/milk line will add approx. 2,400 kl which will replace an obsolete existing line. The EDGE Green Building certification program will include buildings retrofitting and acquisition of solar panels with a maximum output of 1,8 MW to be installed on the ground over an area of 1.99 ha.

Kirene is a portfolio client of IFC. Previous investments are available at https://disclosures.ifc.org/project-detail/ESRS/33844/societe-industrielle-agroalimentaire-s-a-siagro-  and https://disclosures.ifc.org/project-detail/ESRS/39269/societe-industrielle-agro-alimentaire-s-a. The environmental and social (E&S) performance of Kirene’s projects in portfolio has been satisfactory.                                              

Overview of IFC's Scope of Review

      IFC’s E&S review of the proposed investment included discussions with Kirene’s senior management and a site visit at the facility in July 2022. The review covered environmental, health and safety (EHS) and social documents and information submitted by Kirene, including technical details of the proposed expansion, Kirene’s E&S management system (ESMS) and food safety management system (FSMS), Kirene’s “General EHS requirements for Contractors” and EHS KPIs; E&S regulatory monitoring and compliance documents, including the “water extraction and utilization authorization”; Kirene’s “Internal Operation Plan” (equivalent to Emergency Preparedness Plan), Internal Human Resource (HR) Regulations; and the Environmental and Social Responsibility Charter.

Considering the critical importance of water management aspects, an IFC water specialist reviewed the company’s water resources information, including the ‘Source Vulnerability Assessment’ and ‘the Water Protection Plan’, prepared by an independent consultant in 2016.

 Comments:                                                  

E&S risk screening was carried out using the: (i) Contextual Risk Screening (CRS) tool (ii) IFC’s Gender-Based Violence (GBV) tool, and (iii) the Global Map of Environmental and Social Risks in Agro-commodity (GMAP). The CRS tool flagged the risk of water resources vulnerability in Senegal, with frequent shortages experienced over the last few years.

                                             

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan