Summary of Proposed Investment
Project Number
7482
Company Name
Milcafe Limited
Date SPI Disclosed
Apr 8, 1996
Country
Tanzania
Industry
Agribusiness and Forestry
Status
Completed
Sector
Coffee, Cocoa, Tea
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : May 17, 1996
Signed : Oct 14, 1996
Invested : May 16, 1997
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
Project name Tanzania-Milcafe Limited
Region Sub-Saharan Africa
Sector Agriculture
Project No. 007482
Projected Board Date May 20, 1996
Company Name Milcafe Limited
Technical Partner and/or Major Shareholders: The Company is owned by Interchem Pharma Limited (70%) and Edm. Schluter & Co. AG Switzerland (30%). Interchem, which was founded in 1987, is a large Tanzanian pharmaceutical manufacturing company. Edm. Schluter, a Swiss holding company, has been engaged in coffee trading since 1980.
Project Cost including proposed IFC investment
Project Cost: US$ 1.60 million equivalent
IFC Investment: US$ 0.45 million loan
Location of Project and Description of Site: The project’s facilities are located in Moshi, Tanzania.
Description of Company and Purpose of Project: Milcafe Limited started operations in 1993 by buying coffee at auction and exporting it to Europe. Following the industry’s liberalization, the company began to purchase parchment coffee directly from growers and arranged to have the coffee contract milled by the government-owned Tanzania Coffee Curing Company (TCCC) at Moshi, before export. Because of its success, the company has decided to operate its own coffee milling machinery. In addition to processing its own coffee, Milcafe will process coffee for associated companies and other traders on a contract basis.
Milcafe will provide an alternative vehicle to the government-owned company for milling coffee. This should accelerate the liberalization of coffee marketing and processing, which in turn is expected to benefit smallholder growers. The project would also increase the value of coffee exported due to improved milling standards. In addition, the project will generate additional employment.
Environmental Categories and Issues: This is a Category B project according to IFC’s environmental review procedure. Environmental, health, and safety issues associated with this project include solid waste disposal, dust emissions, employee safety and training, fire protection, and general housekeeping. The company has submitted an environmental, health and safety management plan that satisfactorily addresses these issues. The ERS will be in the PIC by April 15, 1996.
Date SPI sent to PIC April 8, 1996
For additional Information contact: Corporate Relations Unit - telephone (202) 473-7711 - facsmile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
