The two project sponsors are SACO and Biopartenaire. Both companies are fully owned by Barry Callebaut, a leading manufacturer of high-quality chocolate and cocoa products headquartered in Switzerland. Barry Callebaut is listed on SIX Swiss Exchange, Switzerland''s principal stock exchange based in Zurich.

The maximum portfolio balance will be up to US$9 million in CFA Francs equivalent. IFC’s participation will be in the form of a risk sharing facility with a maximum risk exposure of 50%.

6.08 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	6.08
Loan
Equity

* These investment figures are indicative

The project will benefit cooperatives and farmers located in various locations in Côte d’Ivoire.

The Project is expected to (i) improve smallholder farmers'' revenue by granting them access to short-term financing and productivity tools and helping them establishing and building credit histories; (ii) strengthen the cocoa value chain by training farmers in financial literacy and planting techniques; and (iii) reach a significant number of smallholder farmers within 5 years, presenting a blueprint for the cocoa sector and beyond on how to engage in direct farmer lending.

IFC will (i) provide risk mitigation to the Sponsors to extend financing to smallholder farmers who are typically excluded from traditional banking system; (ii) support the training of field agents and the use of innovative tools to analyze farmers level data; and (iii) help the Sponsors improve their E&S and credit risk management practices.

This proposed investment has the potential for significant environmental and social risks related to child labor, loss of biodiversity and traceability of products, which are site-specific. Key E&S risks associated with this investment are common across the cocoa industry and the subject of numerous on-going industry and joint stakeholder as well as BC specific initiatives: (i) current procurement of cocoa is not yet 100 percent sustainable and traceable; and (ii) the child labor monitoring and remediation system (CLMRS) to identify child labor risks in part of BC’s traceable supply chain and to target assistance to the verified risks is in the process of being set up. The associated risks are already the topic of significant preventative and remediating programs addressed by BC outside of this project. Potential risks can be further avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections. Moving forward, BC’s risk management framework and implementation will be fully in compliance with these standards and guidelines. However, residual risk remains due to limited traceability of cocoa from sources other than from SACO’s partner cooperatives and BP’s network of Farmers’ Groups.



This is a Category A project in accordance with IFC’s Environmental and Social Sustainability Policy. The project is designed to further avoid, minimize and manage E&S risks and impacts of the company’s operations in compliance with Cote d’Ivoire legal and regulatory requirements, IFC’s Performance Standards (PSs) and applicable World Bank Group (WBG) General and sector-specific (Plantation Production and Crop Production) Environmental, Health and Safety (EHS) Guidelines.

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.