Farmsecure is an active participant and specialized agribusiness service and input provider operating in South Africa. Its core business is development and optimization of farming enterprises through its contracting and farmer partnership schemes which include the provision of services for the mitigation of climatic risk (through insurance) and price risk (through hedging). Farmsecure also provides farmers with technical advice and crop marketing. Farmsecure''s main business segments are: (i) grain production, (ii) livestock, (iii) own fruit production and fruit exports, (iv) distribution of fertilizers, and (v) provision of technical services.
Farmescure is owned by four shareholders: (i) The Jerogene Trust, a trust related to the Yazbek founder family (40,95%), (ii) The Trio Farms Trust, a trust related to the three founder executives: Schalk Lubbe, Johnny Maass, and Erick de Klerk (20,25%), (iii) the Sameer Group (28,8%), a major Kenya based conglomerate with interests in agriculture, banking, construction and IT sectors controlled by Mr. Naushad Merali; and (iv) Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), a subsidiary of the German promotional bank KfW a German investment and development company focusing on investments in emerging markets (10%).

The proposed IFC funded risk participation in SCB’s financing is capped at R500 mn. IFC’s maximum participation would not exceed 50% of SCB’s total facilities to Farmsecure. The IFC participation will have tenor of one year and be renewable up to two times.

58.80 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	58.80
Equity

* These investment figures are indicative

Farmsecure is headquartered in Cape Town (South Africa) and its operations are well spread across South Africa, with fertilizer business throughout the Southern Africa.
The IFC risk participation concerns the South Africa operations only.

Farmsecure is having a significant developmental impact by promoting a more productive and sustainable agri-business model in South Africa. The Project is expected in turn to make a significant contribution to South Africa''s rural economic development, as well as to global food security by increasing access to sustainable and profitable farming structures for farmers.
This means that Farmsecure''s focus includes the empowerment of farmers with scientific farming skills, agricultural knowledge and technologies, and hands-on support to assist farmers in fulfilling their maximum potential both in terms of yield and revenues, positioning the Company ahead of the field in the region''s agricultural development.
Farmsecure works on a commercial farming basis with a long term goal to further develop small scale farming supported by the infrastructure of sustainable commercial farming.

IFC will help sustain financing to Farmsecure by providing liquidity that SCB is currently unable to support. Without IFC, SCB will be confronted with liquidity and exposure constraints with the growth of the Group.

The project has been categorized as a Category B according to IFC’s Environmental and Social Sustainability Policy because none of the environmental and social impacts are regarded to be significant. Any impacts arising as a result of the project can be avoided or mitigated by adhering to the well enforced relevant South African national legal and regulatory requirements. A number of acts, such as the National Environmental Management Act (NEMA), National Water Act, Conservation of Agricultural Resources Act, Occupational Health and Safety Act, and Labor Relations Act, are used to guide practice, as well as various international best practice standards which are in line with IFC’s Performance Standards. Impacts will also be managed through Farmsecure’s Environmental and Social Management System (ESMS) to be developed as part of IFC’s investment. The ESMS will incorporate a comprehensive environmental and social due diligence procedure to evaluate prospective farming operations to ensure their compliance with host country national legal and regulatory requirements, IFC’s Performance Standards and relevant World Bank Group (WBG’s) Environmental, Health and Safety (EHS) Guidelines.