The project is sponsored by seven shareholders (jointly referred to as the sponsors). The principal shareholders are: Mr. Patrick Henfrey; Mr. Geoff Burrell and Mr. Erwin Protzen (combined 69.2% shareholding). The other shareholders jointly own 30.8%

The total project cost is estimated at $25.0 million, out of which, about $12.4 million would be spent on production facilities and infrastructure at Athi River, Kenya and Kabale, Uganda. Other investments would be towards raw material development, transportation vehicles, pre-operative and research & development expenses and long-term working capital requirements.

IFC’s proposed investment in the company would be in the form of a subordinated C- Loan of up to $3.0 million and an A loan of up to $6.0 million for IFC’s own account

9.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.0
Equity	0.0

* These investment figures are indicative

The key project site is at Athi River Export Processing Zone in Kenya. It is a greenfield site, located within an industrial export processing zone. It is well connected by road to Nairobi, Kenya. A part of the financing would also be used to upgrade the production facilities at the company’s plant at Kabale, Uganda. This is an existing plant, currently under operations

This project will have a strong development impact in the fight against the increasingly resistant malaria parasite by supporting one of the leading African producers of artemisinin to expand and strengthen its operations. The project will augment the efforts of various donor agencies to facilitate a cost-effective switchover to artemisinin- based combination therapies (ACTs), which have proven effective in treating malaria.

The project will provide employment to over 250 workers directly and support the livelihood of numerous farmers in Kenya, Uganda, and Tanzania. It will also introduce new process technology to the East Africa region and set an example for world-quality extraction and purification of other similar plant-based products in East Africa.

IFC’s investment will assist in strengthening a natural products extraction company supplying critical active pharmaceutical ingredients (APIs) to the pharmaceutical industry and a company that is uniquely positioned to cater to the growing demand for a vital malaria drug by providing it with long-term financing, that is otherwise unavailable locally. IFC is also expected to play a role in raising parallel equity financing from other investors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project company.

The following potential environment, health and safety and social impacts of the projects were analyzed:

- land use change;
- pesticides handling and application;
- power and water supply;
-out grower extension services;
- labor standards;
- environmental management;
- hazardous materials management;
- waste disposal; and
- general employee safety and training.

The company has presented an outline and commitments to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements, i.e. the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines.

The Environmental Review Summary (ERS) will be made available at the ABE production facilities in Athi River and Kabale, and the Company’s offices in Nakuru, Kampala, and Usa River and the respective municipal offices of these locations. Availability of the ERS at these locations has been advertised in a national newspaper.