Summary of Proposed Investment
Project Number
8872
Company Name
Amaka Cotton Ginneries Limited
Date SPI Disclosed
Apr 15, 1998
Country
Zambia
Industry
Agribusiness and Forestry
Status
Completed
Sector
Natural Fibers (Cotton, Sisal, Jute, etc.)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : May 21, 1998
Signed : Aug 25, 1998
Invested : Nov 5, 1998
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
Project Name Zambia-Amaka Cotton Ginneries Limited
Region Sub-Saharan Africa
Sector Agri-business
Project No 008872
Projected Board
Date June 30, 1998
Company Name Amaka Cotton Ginneries Limited
Technical Partner and/or Major Shareholders
Amaka Cotton Ginneries Limited is a Zambian company equally owned by Amaka Holdings Limited, Swarp Limited and Mukuba Textiles Limited. Amaka Holdings Limited comprises seven small to medium size Zambian companies dealing in transport, farming and construction. Swarp Limited is the holding company for Swarp Spinning Mills Limited, the largest textile company in Zambia. Mukuba Textiles is a smaller textile company located on the Copperbelt.
Project Cost Including proposed IFC investment
The project cost, including seasonal working capital for purchase of seed cotton, is estimated at US$6,229,000 and IFC has been requested to provide a loan of US$1,300,000.
Location of project and Description of site
The project is located in Kabwe, 160km north of Lusaka, on a site owned by the sponsors. The site is developed and has a large warehouse, an office block and a railway siding.
Description of Company and Purpose of Project
Amaka Cotton Ginneries was setup in 1995. The company is setting up a cotton ginnery to produce cotton lint for sale. Seed cotton will be purchased mainly from small scale farmers through cotton outgrower companies. Lint will be sold locally mainly to the shareholding companies. The gin is being supplied from China by Zambia-China Mulungushi Textiles Joint Venture Project, a textile company located in Kabwe.
IFC’s finance will complete the financing plan.
Environmental Category and Issues
This is an environmental review category B project. Environmental and occupational health and safety issues include source of power and water, treatment and disposal of process effluent; disposal of solid and other liquid wastes including sewage; ambient dust emissions; employee exposure to dust, heat and noise; provision of personal protective equipment and health and safety training for employees; fire safety and emergency response; and plant hygiene and housekeeping practices. Liquid wastes generated by the process are minimal.Sewage and solid waste from the plant will be handled by municipal authorities. Employees will receive appropriate training in safety procedures and will be provided with protective equipment. Dust levels within the plant will be controlled with a system of ducts and cyclone extractors. A comprehensive fire safety system including alrms, smoke detectors, a fire ring, and hose reels will be installed in the plant
The Environmental Review Summary was submitted to the Public Information Center on March 26, 1998.
Date SPI sent to PIC April 15, 1998
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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April 15, 1998 3:55 PM
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
