36414 - Credit du Congo - SME Risk Sharing Facility

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Summary of Investment Information

Project Number

36414

Company Name

CREDIT DU CONGO SA

Date SPI Disclosed

May 15, 2015

Country

Congo, Republic of

Region

Africa

Projected Board Date

Jun 16, 2015

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 18, 2026

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Oct 21, 2015
Signed : Jun 29, 2016

Sector

Other Non-Banking Financial Institution (NBFI)

Additional Project Attributes

Blended Finance

Project Description

The project consists of a risk-sharing facility (“RSF”) between IFC and Credit du Congo (“CDCO” or “the Bank”) to help the Bank finance a portfolio of eligible Small and Medium Enterprises (“SMEs”) in the value chain of Total Exploration & Production Congo (“TEPC”), the country’s largest global oil exploration and production company. The local SMEs referred to IFC and the Bank have been identified by TEPC based on a detailed survey of local subcontractors in Total’s value chain. The SMEs concerned operate in a range of industries and services ranked as priority areas for local sourcing under TEPC’s local content program. As part of the RSF, IFC would share with CDCO the senior risk on a portfolio of new loans to such SME.

The Project will be supported by the Global Small and Medium Enterprises (SME) Financing Initiative which IFC is undertaking in partnership with other multilateral and bilateral partners to help expand SME financing on a sustainable basis.

Associated Advisory Engagement

IFC expects to deploy its Business Edge SME training platform in the Republic of Congo, to provide capacity building for local firms including subcontractors of TEPC.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	18.37
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The project is expected to have the following development impact: (i) Increase access to finance for local Small and Medium Enterprises; (ii) help local firms compete more effectively for contracts in extractive industries, through training and capacity building. Financial inclusion and job creation are the two major economic benefits expected from the development of strategic value chains with a higher local content in the Republic of Congo.

E&S Category Rationale / Risks and Mitigation

The project has been categorised as FI-2 according to IFC’s Environmental and Social Review Procedures. The project consists of a risk-sharing facility with Credit du Congo, a subsidiary of the Attijariwafa Bank Group in the Republic of Congo, and Total Congo to support the SMEs in Total Congo’s value chain with an anticipated focus on the construction, industrial painting and boilermaking and piping sectors. The overall portfolio risk includes a limited number of business activities that have potential medium level adverse environmental and social risks or impacts that are few in number, general site specific, possibly reversible, and readily addressed through mitigation measures. For this project, Credit du Congo will be required to screen the eligible loans against the IFC Exclusion List and the National E&S Laws of the Republic of Congo

The key E&S risks and impacts of this project derive from the capacity of Credit du Congo to identify and manage the potential environmental and social risks associated with its lending activities in the SME sector, which typically have limited environmental and social risks (disposal of hazardous material, waste management, occupational health and safety, etc.) in line with IFC’s policy requirements. At present, Credit du Congo does not have an Environmental and Social Management System (ESMS) outlining the procedures, responsibilities and tools for undertaking E&S risk management of its lending activities. As part of this investment, the bank will be required to implement an ESMS to ensure all eligible loans under the risk sharing facility are in compliance with applicable environmental and social requirements. The bank is generally in compliance with labor standards and will need to establish written harassment policies and procedures.

Contacts

For Inquiries About the Project, Contact

Mohammed Mejbar
Managing Director
Credit du Congo
B.P. 1312 Pointe Noire
Republic of Congo
Tel: (+242) 06 667 22 00
Fax: (+242) 22 294 32 20

Lea Ndombi
Head, Local Content Programme
Total E&P Congo
Avenue Raymond PoincaréBP : 761 Pointe-NoireRepublic of Congo
Tel: (+242) 22 294 6746Fax: (+242) 22 294 6701

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	07/31/2015
Establish SEMS	07/31/2015
Staff Training	07/31/2015

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