Approximately 100% of the shares of VD are held by Velocity Africa Holding B.V., a holding company established by Velocity Capital Group.

Total project cost is of approximately €45million out of which IFC, with GAFSP support, will provide up to €8million.

6.93 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	6.93

* These investment figures are indicative

The project area is located in the Oromiya National Regional State in Ethiopia.

1) Additional and steady income for 5,000+ dairy farmers in the Oromiya region of Ethiopia.
2) Positive incentives for farmers to invest in their livestock and increase their yields.
3) Introduction of healthy, safe dairy products and a resulting increased food safety.
4) Large-scale employment (250+ full-time employees) as well as further jobs in the adjacent business areas.
5) Increased competition in the Ethiopian dairy industry.
6) Economic development of a sector of pivotal importance to rural and urban economic development.

1) Investment by IFC provides stamp of approval to the Company / Sponsor and facilitates the sourcing of a debt package from the Development Bank of Ethiopia.
2) IFC''s technical expertise, global knowledge of the industry and markets as well as lessons learned from other integrated dairy projects are valuable resource to the Company.
3) IFC will assist VD in the adoption of best E&S standards across its operations by applying IFC''s performance standards.

This proposed investment is expected to have limited environmental and social impacts which are expected to be site-specific and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy. This categorization is in accordance with other similar type of projects within the sector. The project is designed to avoid, minimize and manage E&S risks and impacts of the Company’s operations in compliance with applicable IFC’s Performance Standards and World Bank Group (WBG) General and sector-specific (Dairy Processing) Environmental, Health and Safety (EHS) Guidelines.



Key E&S issues applicable for this investment are: (i) operational licenses for the dairy processing plant; (ii) environmental, occupational health and safety (OHS), food safety and social management system and related procedures, including Hazard Assessment and Critical Control Point (HACCP) Principles and ISO 22000 certification; (iii) EHS organizational structure and internal capacity; (iv) adherence to Ethiopian labor law, working conditions, standards and OHS risk prevention and management, including employees, contractors and nearby communities; (v) Life and Fire Safety (L&FS) provisions and emergency preparedness and response; (vi) use of public utilities (water supply and energy), water and energy use efficiency through project design and adoption of best available technology, including equipment selection; (vii) wastewater collection and treatment, solid waste disposal, air emissions from generators and boilers, including greenhouse gas emissions, potable water quality, treatment and monitoring, hazardous material handling, management and control of pest and rodent; (viii) food safety, (ix) engagement with communities on traffic safety and social performance.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.