PROJECT

Projects

Summary of Investment Information

Project Number

37932

Company Name

C.E.D.I.A.M. SA

Date SPI Disclosed

Jul 20, 2017

Country

Mali

Region

Africa

Projected Board Date

Sep 30, 2017

Environmental Category

B - Limited

Status

Active

Last Updated Date

Jun 12, 2021

Department

Regional Industry - MAS Africa

Industry

Agribusiness and Forestry

Previous Events

Approved : Dec 18, 2019
Signed : Jun 27, 2020
Invested : Dec 21, 2020

Sector

Fruit and Vegetable Preservation or Processing (Canning, Freezing, Drying, Jams, etc.)

Additional Project Attributes

Blended Finance

Project Description

The proposed investment consists of a Eur6.5 million senior secured loan to Centre d’Etude et de Développement Industriel et Agricole du Mali SA (“Cediam” or the “Company”), a multi-fruit processing company, operating in Yanfolila (southern Mali), established in 2011 and operating since 2012. Cediam sources mangoes from 2,000 smallholders for export as fresh mangoes as well as to produce mango concentrate and puree packed in drums and exported mainly to Europe and the Middle East, via Montecarlofruit, a Montecarlo-based company specialized in the distribution of fruits as well as products such as puree, concentrates and juices.

The proposed financing may also be made available under the private sector window of the Global Agriculture and Food Security Program (“GAFSP”), a multilateral mechanism launched by the G20 with the purpose of scaling-up support to help less developed countries alleviate poverty and improve food security, a program implemented by IFC.

The investment will help support the company’s expansion plan, which entails: (i) development of a 234 ha land parcel, under acquisition in the Yanfolila region, to produce its own mangoes, tomatoes and passion fruit; (ii) expansion of the storage warehouse at the existing processing facility in Yanfolila and construction of a fresh mango sorting and packing platform; (iii) acquisition of vehicles to expand the transportation fleet; and (iv) installation of a pouch-filling line for tomato concentrate targeting Mali and neighboring countries. This investment would help support Cediam’s vertical integration and diversification projects, aimed at securing fruit supply as well as diversifying its business through products that would ensure year-round operation of the company’s existing processing facility rather than limiting operations to mango processing only for 4 months of the year (April to July). As part of a future expansion project, Cediam plans to install a fruit juice production line using the company’s mango puree. However, this does not fall within the scope of IFC’s proposed investment.

Associated Advisory Engagement

An advisory project is being considered to provide technical assistance to Cediam for large-scale field operations in fruit production and to assist Cediam to more adequately service farmers.

 

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation