IFC as implementing entity of the FRFS is expected to provide a senior unsecured loan of up to €7 million (equivalent to US$8.2 million) (“blended concessional finance co-investment”). High sector and project specific risks lead to a mismatch of risk and return, limiting the project’s ability to secure the required financing. By providing a concessional loan, FRFS is enabling IFC to overcome its participation constraint and provide the required loan at an interest rate that would make the project viable and achieve impact related to local value addition, job creation and improving consumers access to wheat flour in Cameroon. The level of concessionality (i e., “subsidy“) provided by the blended concessional finance co investment is estimated to be approximately 6.5% of the total project cost. The total cost of the project is €16 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 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.

Project-Level Impact: Economic Effects: The Project aims to boost domestic wheat flour production, enhancing value addition and job creation through up- and downstream linkages. It is expected to stimulate Cameroon’s food processing sector and support economic diversification. Customer Impact: By increasing the availability of safe, quality, and affordable wheat products, the Project will improve consumer access and strengthen food security. Market Creation – Competitiveness & Resilience: The Project will promote investment in local food processing, reduce import reliance, and showcase the viability of expanding domestic wheat flour production. It is also expected to drive adoption of best practices in post-harvest handling and strengthen resilience of both local and global food supply chains.Project-level Impact: Economy-wide effects: The Project, through import substitution efforts, is expected to increase domestic value addition and create more jobs (direct and indirect) through up- and downstream linkages in Cameroon, by expanding domestic wheat flour production. The Project is expected to bring a much-needed boost to the food processing sector and contribute to diversifying and strengthening the local economy. Stakeholders – Customers: The Project is expected to increase end consumer access to safe, quality, and affordable wheat products in the country, and therefore contribute to improving food security. Contribution to market creation - Competitiveness/Resilience: IFC expects the Project to increase competitiveness of the market through increased investment in food processing to bolster domestic food marketing and reduce reliance on food imports. The Project will demonstrate the potential to expand wheat flour production and marketing in the country to increase supplies and ensure adoption of industry best post-harvest handling and storage practices. The Project is also expected to contribute to building resilience.

Financing Structure: IFC is considering offering long-term financing on terms not otherwise available in Cameroon (7 years with a 2-year grace period), potentially alongside concessional blended finance from Canada's Facility for Resilient Food Systems (FRFS). If approved, the €16 million package including a subordinated blended finance loan of €7 million and IFC’s proposed €9 million senior loan, could enhance the project’s bankability by helping mitigate key risks in a fragile and conflict-affected environment. These include execution risks tied to major expansion, raw material supply and price volatility, and limited collateral availability. Notably, there have been no EUR syndicated loans or corporate bond issuances in Cameroon in the past 12 months. Non-Financial Additionality – Knowledge, Innovation, and Capacity Building: IFC is also considering providing technical assistance to support AFISA in aligning its operations with IFC Performance Standards and international best practices, particularly in environmental, social, health, and safety areas. In addition, IFC is exploring the possibility of offering advisory support through a last-mile retail initiative targeting female beignet (fried doughnut) vendors—core customers of AFISA’s flour. This initiative would aim to strengthen their business and financial management capabilities.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Female Direct Employment (#) Operations And Maintenance	individuals		Not Available	Not Available	Not Available

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.