Bakhresa’s main sponsor, Mr. Said Salim Awadh Bakhresa is founder and CEO of the Bakhresa Group of companies, a prominent Tanzanian businessman. Current responsibility and leadership for the Project are fully allocated to one of his son, Mr. Abubakar Said Bakhresa, as Executive Director, a major shareholder of the company. Other shareholders are family members.

The proposed IFC A-loan is a corporate facility of up to $8 million that will be used to finance the Project as described above.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

The project location will be in the new industrial area in Kigali, Rwanda. Bakhresa has been granted by the Rwanda Development Board (RDB) on March 4, 2009, an authorization investment certificate number C/613/2009 based on the Investment Law number 26/2005 of 17/12/2005. IFC financing will also be used exclusively for the Project in Kigali.

The project will ensure significant development impact including notably new jobs creation and food provision. It will also contribute to the governments’ revenues, through increased corporate tax. The project will contribute to improve the rail’s operation between Tanzania and Rwanda, as raw materials will be transported, in block train (950km) and by road (450km) into Rwanda. Furthermore, the project would boost local production of wheat and ensure market access for locally produced quality wheat for further processing into flour.

As part of the project, IFC will help improve Bakhresa’s corporate governance and achieve high environmental and social standards, including food safety to comply with international standards, labor management and reduce incidence of HIV/AIDS. IFC’s support, a long-term financing, will also send a strong signal of confidence to the market for Rwanda, Burundi and Eastern Congo.

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 that may result will be avoided or mitigated by adhering to generally recognized performance standards, programs guidelines or design criteria.

The new mill will be located in a newly proclaimed Industrial Development Zone (IDZ) in an outlying area of Kigali with low levels of habitation. An Environmental Impact Assessment is required prior to development of the project and an Environmental Management Plan will be implemented so as to minimize potential impacts during the construction phase.

Milling is typically a low impact activity and Bakhresa has extensive experience in the industry and will construct a modern facility with a dust collection system, including energy efficiency measures. The primary risk is that related to a dust explosion which will be managed via Bakhresa’s Safety Management Program that is applied across the Group and incorporates environmental issues along with occupational health and safety aspects. A HACCP food safety program will be implemented at the facility along with an accredited ISO 9000 quality management system.

Please note that the Environmental and Social Action Plan (ESAP) for the project will be available in the Environmental and Social Review Summary.