IFC as implementing entity of the IDA PSW BFF is expected to provide USD 9 million in the form of a concessional loan (the blended concessional finance co-investment). Without the support of the blended concessional finance co-investment the expansion of processing and warehousing capacity in the Kano region and the subsequent integration benefits for local smallholder farmers will not be achievable due to limited collateral availability and potential security risks in-country. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be [1.9 - 5.3%] of the total project cost. The total cost of the project is about US$26m. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated 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.

9.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.0
Equity

* These investment figures are indicative

The most significant expected Project outcomes are i) contributing to domestic value addition through investments in processing facilities, ii) improving farmer livelihoods through more reliable access to storage and offtake, and iii) benefitting the environment through reductions in GHG emissions associated with high food losses. Beyond the Project, IFC anticipates that contribution to market creation will stem from better integrating an underserved part of the country into global value chains by setting up storage and processing facilities close to the producers and demonstrating the business rationale for enhancing this type of physical infrastructure in the north of Nigeria to counter existing bottlenecks for sector development.

IFC is supporting Robust in its value-added trading and processing operations at origin in Nigeria. On financial additionality, IFC is providing long term financing in Nigeria at tenors that are otherwise not available to private sector companies and mobilize other lenders to provide financing on comparable terms. IFC's non-financial additionality centers around strengthening Robust's operations in a challenging sector where market risks are high, doing so by aligning their corporate governance, E&S and risk management with best international practices.

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 E&S risks and impacts of the Company’s operations in compliance with national legal and regulatory requirements, IFC Performance Standards and World Bank Group (WBG) General and Sector-specific (Food and Beverage processing) Environmental, Health and Safety (EHS) Guidelines, and its own corporate policies. Key E&S risks associated with this investment relate mainly to (i) sesame and raw cashew nut sourcing in Nigeria and risks related of harmful child labor, forced labor and conversion of natural/critical habitats (leading to biodiversity loss); and (ii) at warehouses and processing facilities, the risk relate to the implementation effectiveness of Robust’s EHS, HR & food safety management systems, fair and safe working conditions for employees and contractors, energy efficiency, security management and community grievance mechanism. 

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.