47679 - Solidiagui

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Summary of Investment Information

Project Number

47679

Company Name

SOCIETE LIERKANG DIAGUISSA EN GUINEE

Date SPI Disclosed

Nov 20, 2023

Country

Guinea

Region

Africa

Projected Board Date

Mar 31, 2024

Environmental Category

B - Limited

Status

Active

Last Updated Date

Sep 19, 2024

Department

Regional Industry - MAS Africa

Industry

Agribusiness and Forestry

Previous Events

Approved : Dec 20, 2023
Signed : Dec 21, 2023
Invested : Sep 16, 2024

Sector

Soft Drink

Additional Project Attributes

Blended Finance

Project Description

The proposed investment is a debt package which consists of an IFC A loan of up to EUR5.6 million and a Blended Finance (BF) senior loan of up to EUR5.6 million (the “IFC Loan”) to support the expansion and diversification program of Société Lierkang Diaguissa en Guinee SARL (the “Company” or “Solidiagui”), one of the leading fruit juice companies in Guinea-Conakry. IFC would finance the (i) expansion of the current juice beverage production capacity and (ii) installation of a dairy products line within the existing production hall to produce yoghurt and liquid milk (“the Project”). Solidiagui has been distributing beverage brands including ‘Sagiko’ juice and ‘Incolac’ milk products since 2009, then started manufacturing its own brand ‘Fruitalos’ and ‘Sagiko’ juice under license upon completion of its factory in 2021.

Associated Advisory Engagement

IFC advisory service is exploring the potential to support Solidiagui in implementing a Food Safety Management System (FSMS) that complies with ISO 22000 standards in the juice beverage facility and dairy plant, while enhancing operational efficiency and strengthening the corporate governance framework.?

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.11
Equity

Development Impact

The Project will increase consumer access to dairy and juice beverage products and therefore contribute to food security and nutrition in Guinea where prevalence of undernutrition, stunting and wasting is high. Protein intake per capita and day is also low. IFC expects the Project will increase value addition and create jobs. IFC’s analysis of the Project suggests average multiplier effects on the value-added dimension, with an overall value addition estimated at US$3,5million, including 150 direct jobs and 300 indirect and induced jobs along the Project’s supply chain. The investment, complemented by IFC Advisory, will increase competitiveness in the market supporting (i) local dairy processing to gradually substitute imports; (ii) expansion of canned juice production line; and (iii) technical and operations improvements in terms of adoption of plant and food safety standards of a leading player in Guinea’s dairy and fruit juice industry, with demonstration and replication potential.

On financial additionality, IFC will be providing the Company with long-term financing on terms otherwise not available in Guinea (8-year tenor with 3-year grace) and blended finance from IDA PSW BFF to adjust the risk-return profile of the transaction. IFC’s non-financial additionality consists of providing Food Safety Advisory to support the implementation of a Food Safety Management System (FSMS) that complies with ISO22000 standards in juice beverage production and dairy plant design, while enhancing operational efficiency and strengthening Solidiagui’s corporate governance. The support will help align Solidiagui’s operations with IFC performance standards and industry best practices.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC's 2012 Policy on Environment and Social (E&S) Sustainability. The project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIPs). Key E&S risks and issues for this investment are related to: (i) E&S impact assessment (ESIA) Study for the proposed expansion; (ii) Solidiagui’s capacity to implement its E&S and Food Safety Management System (ESMS/FSMS) for its beverage operation in line with IFC PSs and WBG EHS Guidelines; (iii) assurance of fair, safe and healthy working conditions in line with IFC PS2 for employees and contract workers, especially on Gender-Based Violence (GBV); (iv) supply chain policies and procedures for raw material sourcing (sugar, skimmed milk powder and juice concentrates), including risks of harmful child labor, forced labor, significant OHS risks, or natural habitat conversion; (v) air emissions, effluent, noise and solid/hazardous waste management, (vi) sustainability of water resources availability for the proposed expansion; and (vii) stakeholder engagement and community grievance mechanism, especially in relation to land acquisition.

Contacts

For Inquiries About the Project, Contact

SOLIDIAGUI
Souleymane SOW
Chief Executive Officer
+224 621-969-696
souleymane@solidiagui.com
Madina, corniche sud communede Matam - Republique de Guinee - BP514)
https://solidiagui.com

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Local Access of Project Documentation

Madina, corniche sud commune
de Matam - Republique de Guinee - BP514

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose 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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