The Project is expected to be supported by the International Development Association’s Private Sector Window Local Currency Facility (IDA-PSW LCF), subject to Central Bank approval of the ETB Loan. Depending on the approval, the Project may be also supported by the Private Sector Window of the Global Agriculture & Food Security Program (GAFSP). IDA-PSW LCF support will ensure that the Company gets access to long-term funding in local currency at a rate that ensures Project’s financial sustainability. Without the support of the blended concessional finance the Project’s impact will not be achievable due to challenges to attract affordable long-term funding in local currency customized to match the company’s cash flows. To the extent needed, GAFSP involvement will also focus on supporting the Project’s needs for affordable long-term funding. The main development impact of the Project is improved access to protein for rural populations which face high levels of food insecurity and undernutrition, as well as direct and indirect job creation. The level of concessionally (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 21.9% of the total Project cost. The total cost of the Project is US$16.2 million. The subsidy estimate is based on the difference between (i) a “reference price and (ii) the “concessional price” being charged by the blended concessional finance co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this Project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blendedfinance.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

Project level impact: (i) Benefits for rural consumers through better access to affordable poultry products in a market where access to protein and micronutrients is limited; (ii) Expansion in income opportunities for the poultry agents; and (iii) Improvement in skills and capacity building for female farmers to improve their sales and profitability (with the support of IFC's advisory work). Market level impact: Promotion of the inclusiveness of the formal poultry market by expanding the use of the appropriate breed and business model that is tailored to the needs of the Base of the Pyramid (BOP) farmers and consumers throughout Sub-Saharan Africa through demonstration and replication, potentially laying the foundation for the adoption of contract farming/outgrower models in the longer term.

1. Financial Additionality: Financing Structure: a) A facility with USD disbursement and local currency repayment is currently not available in Ethiopia; b) IFC is proposing an 8-year loan, including a 3-year grace period to allow sufficient time for to ramp up. Such long-tenor financing with the grace period is not readily available in Ethiopia. 2. Non-Financial Additionality: a) Standard Setting: IFC will assist the Group to develop Environmental Health and Safety (EHS), and social practices in line with international standards. b) Knowledge sharing and capacity building: The Group is working with IFC Advisory team for professionalizing its distribution system and enhancing participation of women in this line of work.

 This is a Category B project, according to IFC’s 2012 Environmental and Social Sustainability Policy. Based on information reviewed during appraisal, the project is designed, as described in the sections below, to avoid, minimize and manage environmental and social risks and impacts of the Company’s operations in compliance with national legal and regulatory requirements, applicable IFC Performance Standards and World Bank Group (WBG) General and sector-specific (poultry production) Environmental, Health and Safety (EHS) Guidelines. IFC’s Good Practice Note on Animal Welfare and its application to EC’s operations has also been assessed during the appraisal.

Key E&S issues applicable to this investment are: (i) operational licenses of the EC’s facilities; (ii) existence and implementation effectiveness of Environmental, Occupational Health and Safety (OHS), and social/Human Resources management system and related procedures, (iii) EHS/HR organizational structure and internal capacity/competency; (iv) adherence to Ethiopian labor law, working conditions, standards and OHS risk prevention and management, implementation at each facility’s employees, including with contractors and nearby communities; (v) Life and Fire Safety (L&FS) provisions and emergency preparedness and response procedures; (vi) use of public utilities (water supply and energy), optimization of water and energy use through design and resource conservation measures and greenhouse gas emissions; (vii) wastewater collection and treatment, solid waste disposal, air emissions from generators and boilers, potable water quality, treatment and monitoring, hazardous material handling, management and control of pests and rodents; (viii) transport safety, and (ix) engagement with communities on E&S risks .

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.