37374 - WFP CRDB Tanzania

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Summary of Investment Information

Project Number

37374

Company Name

WFP PPP Tanzania Borrowers RSF

Date SPI Disclosed

Nov 8, 2016

Country

Tanzania

Region

Africa

Projected Board Date

Dec 15, 2016

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 18, 2026

Department

Regional Industry - MAS Africa

Industry

Agribusiness and Forestry

Previous Events

Approved : Mar 30, 2017
Signed : May 31, 2017

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

IFC intends to partner with CRDB Bank plc in Tanzania to finance farmer cooperatives who supply food commodities to World Food Programme (WFP) or its Patient Procurement Platform (PPP) off-takers. Financing to farmers will be used for seasonal working capital needs such as input costs (seeds, fertilizers, etc), land preparation, weeding, harvesting, etc.

Approximately 40,000 smallholder farmers are expected to benefit from this initiative through higher productivity levels, better crop quality, and lower post-harvest losses, and therefore higher and more stable revenue stream.

The proposed financing package will be supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).

Associated Advisory Engagement

Farmer organizations will be supported through an advisory services package to be provided by IFC which aims at (i) better corporate governance and management of farmer cooperatives; and (ii) improved productivity of more than 40,000 smallholder farmers thereby increasing farmer incomes and increasing commercial maize and soy beans availability for food security.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	3.83
Loan
Equity

Development Impact

The proposed project is expected to have a significant development impact by:
1) Extending access to finance and market access to 40,000 smallholder farmers in Sub-Saharan Africa.
2) Improving rural incomes and food security through increased input use and improved farming practices, given the fact that WFP will purchase only 60-70% of what will be produced by smallholder farmers.
3) Developing an innovative financing structure that can potentially be replicated in other countries or sectors.

Together with WFP, through this flagship facility, IFC will play a catalytic role in improving smallholder farmers lives by introducing a concept of financing against off-take agreements to local banks at the same time securing the repayment source from buyers. This is the way IFC can help link farmers to markets.
IFC is bringing local banks to a segment that has traditionally been considered risky.
IFC''s involvement in advisory services will result in better farming practices and ultimately help increase the production ability of smallholder farmers.

E&S Category Rationale / Risks and Mitigation

The proposed project consists of a US$10 million risk sharing facility with CRDB, an existing IFC client, to support farmers who supply food commodities (maize and beans) to the World Food Programme and its Patient Procurement Platform participants. The project has been categorised as FI-2 according to IFC's Sustainability Policy. The portfolio to be managed by the bank has limited risks related to the supply chain of the agricultural sector. For this project, the Bank will be required to: (i) Ensure that all the eligible loans under the project avoid supporting activities on the IFC Exclusion List and comply with the applicable local E&S laws, and (ii) Comply with the requirements of Performance Standard 2 - Labor and Working Conditions.

The main E&S risks and impacts of this project relate to the ability of CRDB to conduct adequate E&S due diligence and monitoring to identify and manage the E&S risks associated with its lending to the farmer cooperatives, including the risks in the supply chain such as harmful child labor, forced labor, use of pesticides and chemical fertilizers, and impacts on biodiversity. As an existing IFC client, CRDB has developed an Environmental and Social Management System for its entire lending portfolio and has developed specific procedures to screen the E&S risks related to its agribusiness clients. CRDB will be required to adapt the current E&S due diligence procedures to screen the E&S risks related to the farmer cooperatives.

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Local Access of Project Documentation

Point of Contact: Saugata Bandyopadhyay, Deputy Managing Director
Address: CRDB Bank PLC
PO Box 268, Dar es Salaam, Tanzania
Tel: +255 22 2129051
Fax: +255 22 2114235
Email: mailto:Saugata.Bandyopadhyay@crdbbank.com
Web: http://www.crdbbank.com

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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.

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Task Title & Description	Anticipated Completion Date
Develop guidelines	04/30/2017
Staff Training	04/30/2017
ESMS Implementation	10/31/2017
Development of an external communication mechanism	04/30/2017
Life and fire safety	04/30/2017

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