WFM is indirectly 75% owned by Westfalia Fruits and 25% by AgDevCo (together the Sponsors). Westfalia Fruits is a wholly owned subsidiary of Hans Merensky Holdings Proprietary Limited (HMH) and is a leading multinational supplier of fresh subtropical fruit.

HMH is a South African-based vertically-integrated, natural resource-based Company which was created in 1949 and owns two main businesses: (i) the fruit business (Westfalia) and (ii) the timber business (Merensky or Merensky Timbers).  HMH's operations are spread across Sub-Saharan Africa, South America and Europe.

HMH Group shareholding is as follows: The Hans Merensky Foundation - 40%, the Industrial Development Corporation (IDC) - 30%, IFC - 20%, and, three Broad-Based Black Economic Empowerment (BBBEE) organizations: Vuka Forestry Holdings (4%), Women Investment Portfolio Holdings (WIPHOLD) (3%), and, HMH Employee Share Ownership Plan (3.0%) owning the outstanding 10%.

AgDevCo is a social impact investor and project developer working in the African agriculture sector.

The proposal would represent a repeat investment with WFM and a fourth investment with the company’s parent, HMH. Details on previous investments with HMH are as follows:

An equity investment aimed to support timber processing efficiency in South Africa and fruit plantation development in South Africa and Latin America https://disclosures.ifc.org/#/projectDetail/SPI/31557

The establishment of an avocado plantation in Manica Province of Mozambique: https://disclosures.ifc.org/#/projectDetail/SII/34183

A project aimed to strength the company’s supply chain in Latin America: https://disclosures.ifc.org/#/projectDetail/SII/40091                                                   

The proposed Project is estimated to cost USD 7.5m and will be financed with 50% debt and 50% equity.

IFC and IDA PSW are jointly considering financing part of the debt package with a loan of up to USD 2.8 million to finance the Project consisting of: i) IFC A Loan of up to USD 1.4 million; and ii) IDA PSW Loan of up to USD 1.4 million from IFC acting as Implementing Entity of IDA PSW.

AgDevCo will provide balance of the debt package in the form of a loan of USD 0.9 million. The remaining 50% will be financed through equity from Westfalia Fruit and AgDevCo in the proportion of 75% and 25%, respectively.                                                   

Pegache Farm is located on the outskirts of Catandica, in the Barue District of Manica Province in Mozambique. The farm is located on the northern side of Catandica Town, at the eastern base of the Cerro Choa Mountain.                                                   

No governance risks to development impact have been foreseen.                                                   

  This is a category B project according to IFC’s Environmental and Social Sustainability Policy because the project is expected to generate limited and site-specific E&S impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Material E&S risks and impacts include the following: those associated with the management of the labor and working conditions of a large, sometimes seasonal, workforce (estimated at some 300 people at peak production levels) including matters related to Gender and OHS; the efficient maintenance and/or consumptive use of natural resources (including soils, water and other inputs required for plantation agriculture); the need to properly design, build and maintain an earthen dam for the purpose of water storage to be used for irrigation; and, the appropriate provision and management of those involved in security and safeguarding the company’s assets.