Food Concepts was founded in 1999 by Mr. Deji Akinyanju, and commenced operations in 2001. It is a public company (though not listed on the Nigerian Stock Exchange) whose shareholders are Food Concepts International Limited or FCIL (63.7%), Employee Share Trust (1.9%) and other shareholders (34.4%). In turn, FCIL’s main shareholders include Chief Dele Fajemirokun, Mr. Deji Akinyanju, Akinyanju Family, Mr. Sola Alabi, Mr. Jerry Chukwueke and Asaris Limited.

Total project cost is estimated to be $86 million consisted of: (i) QSR expansion; (ii) Bakery expansion; (iii) Setting up a poultry farm; and (iv) working capital. The proposed IFC investment is an A Loan for IFC’s own account of up to $ 10 million, and equity of up to $ 10 million, to be used for QSR and bakery expansion.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.0
Equity	13.0

* These investment figures are indicative

Chicken Republic outlets are located in following cities: Lagos; Abuja; Port Harcourt; Zaira; Kaduna; Owerri; Ibadan; Warri; Benin; Calabar; Enugu; and Ilorin. Butterfield bakeries are located in following cities: Lagos; Abuja; Port Harcourt; Abeokuta; Ilorin; Benin; Kaduna; and Ibadan. Free Range Farms Limited (FRF) is being established on a 250 hectares of land in the Abeokuta Agricultural Zone (AAZ), Ogun State. All sites have good access to major transport routes.

The Project's expected development impact includes (i) employment generation; (ii) gender promotion (QSR sector employs a high proportion of women); (iii) demonstration effect to the QSR/poultry market in West Africa; (iv) MSME reach; (v) develop efficient poultry industry in Nigeria; and (vi) introduction of best practice poultry using a technical partner with a proven track record.

IFC's additionality on the Project includes: (i) IFC will ensure that the Company adheres to high environmental, safety and social standards; (ii) IFC will provide long-term funding to the company to address its long-term funding needs enabling the Company to expand into the region; and (iii) International know-how/best practice operating standards in QSR/poultry sector.

This is a category B project according to IFC’s Environmental and Social Review Procedure because the Environmental, Health & Safety, and Social (EHSS) impacts of the project can be managed through implementation of appropriate mitigation measures. IFC’s review did not identify any significant adverse impacts or high risk exposures.

The key EHSS issues associated with this investment are environmental, social, food safety and quality management system and related issues; occupational health and safety (OHS) management during construction and poultry production, processing, storage and transport operations; supply chain management, including child labor and contractors management; management of waste from poultry production, abattoir, and processing activities; bio-safety controls, including preparedness for avian influenza, and any other poultry disease; energy and water consumption and efficiency; community relationships, land acquisition and economic resettlement for FRF activities, and; standardization of EHSS management systems across the different countries.

To address the above identified issues and meet the requirements of IFC’s Performance Standards, Food Concepts has committed to an Environmental and Social Action Plan (ESAP) covering all of its operations, including the Quick Service Restaurants (QSR), Butterfield Bakery and construction and operation of the proposed Free Range Farms (FRF) poultry production and processing facility. In addition, Food Concepts has teamed up with Innodis of Mauritius (www.innodis.mu) who is its technical partner for FRF project. Innodis will offer technical services including site evaluation/assessment, design, specifications, planning, project supervision, training, recruitment of key personnel, installation and support, and continuous technical support.