IFC as implementing entity of the Canada FRFS may provide a concessional loan of up to US$6 million (“blended concessional finance co-investment”), subject to obtaining the necessary internal approvals. The project requires long term financing to provide it with adequate time for execution and ramp up of operations. However, the high country and project specific risks lead to a mismatch of risk and return, limiting the project’s ability to secure the required long-term financing. Without the risk mitigation provided by Canada FRFS, the project would not move forward. The project is expected to play a critical role to increase domestic value addition and address food security because it will promote local production of wheat flour in a low-income IDA country that relies heavily on imports for essential commodities and has had significant food price inflation. The level of concessionality (i e., “subsidy”’) provided by the blended concessional finance co-investment is estimated to be approximately 8.0% of the total project cost. The total cost of the project is US$19.2 million. 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 Canada FRFS loan. 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.

6.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.0
Equity

* These investment figures are indicative

Project-level Impact: Project Outcome: The Project will increase consumer access to (fortified) wheat products and therefore contribute to food security and nutrition in Sierra Leone 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 direct and indirect jobs along the Project’s supply chain. Market Outcome: The Project will increase resilience in the market by building capacity in the Company’s supply chain to withstand shocks and stresses related the effects of the COVID-19 pandemic and climatic change affecting cereals production. This is expected to have significant impact as the Company is a major player in food distribution in the country.

Financial additionality – Financing structure: IFC will provide a long-term loan with a sufficient grace period, which is not readily available to agribusinesses in the local market. The loan will be structured to fit the expansion project that needs sufficient time for preparation and ramp-up. Non-financial additionality – Knowledge, innovation and capacity building: IFC will provide technical, environmental, and social (E&S), health, and safety expertise to improve overall environmental and safety performance, to align the Company's operations with IFC performance standards and industry best practices.

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.