Dakar, Senegal, October 13, 2020 -
IFC, a member of the World Bank Group, and the Africa Agriculture and Trade
Investment Fund (AATIF) today announced an investment to help Société Africaine
d’Ingrédients (SAF Ingrédients) build an onion dehydration plant in Senegal—the
first in sub Saharan Africa—that will create hundreds of jobs and boost
the country’s agriculture exports.
The unique project involves decommissioning
an existing onion dehydration plant (built in 2003 and closed in 2014)
near Dijon, France, and relocating it to St. Louis in northern Senegal.
Support from IFC and AATIF will also help SAF Ingrédients develop a 760-hectare
onion farm and establish a large out-grower network of onion farmers.
The plant is expected to produce almost 5,000
tons of dehydrated onions annually, representing two percent of the global
supply, with some production being exported to Europe. Dry onion powder
is an important and popular flavoring in soups, stews, and many other dishes.
The €13 million investment is composed of
AATIF’s €6 million senior loan, IFC’s “A” loan of up to €3.5 million
from IFC’s own account, and a concessional loan from the IDA Private Sector
Window Blended Finance Facility of up to €3.5 million. The IDA Private
Sector Window was launched to catalyze private sector investment in places
where it is needed most.
Magatte Wade and Emmanuel Vallantin Dulac,
respectively CEO and Managing Director of SAF Ingrédients, said in a statement:
“Support from IFC and AATIF will allow us to build only the second onion
dehydration plant in Africa while creating jobs and sustaining the livelihood
of thousands of farmers. It will also allow us to grow our business in
West Africa and link Senegal to the global food industry.”
Aliou Maiga, IFC’s Director for West and
Central Africa, said, “This investment illustrates IFC’s support to improve
access to finance for SMEs in agriculture, which is essential to create
jobs in Senegal. It is also timely, as it will help spur agricultural productivity
and contribute to Senegal’s economic recovery from the COVID-19 pandemic”.
Dr. Thomas Duve, Chairman of the Board of
Directors of AATIF, said, “This investment represents AATIF’s first corporate
investment in Francophone West Africa, one whose potential impact in the
local economy excites us. With 100% of the supply being sourced locally,
largely from smallholder and commercials farmers, alongside the creation
of numerous jobs, this project is an opportunity for significant impact
on local value addition, one we are proud to be affiliated with.”
Over the last 10 years, Senegal’s onion
production has increased significantly to reach approximately 400,000 tons
per year. The new plant will process a type of onion which is better suited
for dehydration and delivers higher yields.
IFC—a member of the World Bank Group—is
the largest global development institution focused on the private sector
in emerging markets. We work in more than 100 countries, using our capital,
expertise, and influence to create markets and opportunities in developing
countries. In fiscal year 2020, we invested $22 billion in private companies
and financial institutions in developing countries, leveraging the power
of the private sector to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About the IDA Private Sector Window
As part of the record $75 billion IDA18 replenishment,
the World Bank Group created the $2.5 billion IDA Private Sector Window
to catalyze private sector investment in the poorest and most fragile countries.
Recognizing the key role of the private sector in achieving IDA18 objectives
and the Sustainable Development Goals, the window provides concessional
funds for co-investment alongside IFC and Multilateral Investment Guarantee
Agency (MIGA) private investments. Concessional funds help to mitigate
risk and reduce barriers, which unlocks and crowds in private investment
in emerging markets. For more information, visit: https://ida.worldbank.org/psw
AATIF is a public private partnership mainly
funded by the German Cooperation and the European Commission, dedicated
to promote the food / agricultural sector across Africa by providing patient
capital and technical assistance. The fund provides debt financing to small,
medium and large-scale agribusinesses along the entire agriculture value
chain as well as financial institutions active in the sector. Ticket sizes
range from USD 3.5m up to USD 30m per project with a possible maximum tenor
of 12 year