The proposed IFC loan will be funded by a cross-currency swap with IDA through the IDA PSW LCF (“blended concessional finance co-investment”). The Project requires long-term financing in local currency to provide the Company with adequate time for development and roll out of their new stores and to align the Company’s cash flows with their debt obligations, both in terms of timing and currency. However, the high country, sector, 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 support provided by IDA PSW, the project would not move forward. By supporting the project, IDA PSW would help a local retail company improve access to quality products at affordable prices in the underserved areas and create jobs. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 5.4% of the total project cost. The total cost of the project is $24 million. This estimate is based on the difference between (i) a “reference swap rate” and (ii) the “concessional swap rate” received by the IDA PSW LCF. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institution (“DFI”) Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The most significant, expected project-level outcomes are the stakeholder effects on increased access to modern retail. The project is also expected to generate employee effects through quality job creation, and environmental effects through EDGE-certification of stores. Beyond the project outcomes, the IFC anticipates that its financing will promote greater market competitiveness via competitive pressure and capacity building channels. The project benefits from an inclusion adjustment due to expected increases in the female employee share in the workforce, and a climate adjustment.

IFC’s involvement is expected to bring both financial and non-financial additionality. Financial additionality consists of providing innovative financing structures to support Justrite’s growth and meet its funding needs. On non-financial additionality, IFC will focus on standard setting and knowledge, innovation, and capacity building.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of New Products/Services : stores	number		Not Available	Not Available	Not Available

Provisional Category B based on IFC’s 2012 Policy on Environmental and Social Sustainability as E&S risks and impacts associated with this project are limited, site-specific, and can be readily addressed through generally accepted mitigation measures described in this document and the Environmental and Social Action Plan (ESAP).

Key E&S risks and issues associated with the Project include (a) E&S capacity and scope of the E&S management systems to monitor the QHSE aspects of its operations (stores, warehouses, central meat processing unit and expansion to new locations) in compliance with legal requirements as well as IFC Performance Standards and WBG EHS guidelines; (b) E&S screening criteria & assessment procedures for new store locations; (c) assurance of fair, safe and healthy working conditions for its workforce (direct employees, third party workers and construction workers) including gender based violence; (d) resource efficiency, water and waste management including management of expired foodstuff and goods; (e) supply chain management; (f) life and fire safety (LFS), structural stability of the retail buildings and emergency response management for all stores as per relevant WBG EHS guidelines; (g) food safety management system and (h) traffic and security management.

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.