Nouakchott, Mauritania, July 6, 2020—
IFC, a member of the World Bank Group, today announced that it is providing
$35 million as part of a $200 million credit facility arranged by Societe
Generale to enable Addax Energy S.A. to deliver critical energy imports
to Mauritania, supporting jobs and economic activity in key sectors.
The facility will help Mauritania secure
vital petroleum product imports for the next six months to keep its economy
moving amid supply chain challenges caused by the COVID-19 pandemic. Mauritania,
a country in the Sahel region, relies heavily on imported petroleum.
IFC’s investment is part of its global COVID-19
fast-track financing support package, designed to help client companies—and
the thousands of smaller businesses they support—weather COVID-19-related
disruptions. The financing underscores the World Bank Group’s strategy
to expand support for the Sahel region, which has been hit hard by COVID-19
disruptions and faces security challenges.
Stephen Paris, Addax Energy S.A. CFO said,
“Addax Energy SA, has been, for more than 30 years, one of the longest-established
and a reliable supplier of petroleum products and energy in Africa. We
are extremely proud to have been selected for the third time in a row as
the key supplier of petroleum products to Mauritania. We are also greatly
appreciative of our partnering banks, and IFC’s renewed trust and support
especially in these times of oil market volatility and Covid-19 pandemic
Aliou Maiga, IFC Director for West and Central
Africa, said, “The facility is critical for Mauritania’s economy and
will help mitigate some of COVID-19’s negative economic impacts by safeguarding
the continuous flow of energy in the country and avoiding a major disruption
in the supply chain. Supporting the private sector during these difficult
times will help ensure economic stability and preserve jobs.”
Addax Energy S.A, an IFC client since 2018 and one of Africa’s largest
independent suppliers of oil and gas products, in April 2020 won the tender
to supply Mauritania with petroleum products for six months.
The credit facility will finance the purchase,
transportation, storage, and sales of petroleum products, ensuring a steady
energy supply for Mauritania’s transport, agriculture, fisheries, mining,
and other critical sectors, helping businesses across the economy maintain
operations and jobs.
The pandemic’s economic and social impacts
are expected to be substantial in Mauritania, with the IMF predicting the
country will fall into recession in 2020. COVID-19 has contracted Mauritania’s
exports, threatening jobs and investment. Supply chain disruptions are
expected, making it crucial to ensure the continued supply of goods, especially
imported refined oil products, on which Mauritania depends.
The investment in Addax Energy
S.A. announced today builds upon a $255
million, two-year credit facility committed in May 2018
by IFC, Societe Generale, and three other
IFC—a sister organization of the World Bank
and 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 2019, we invested
more than $19 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
About Addax Energy S.A.
Addax Energy S.A. is the trading arm of Oryx
Energies S.A, which is one of Africa's largest and longest-established
independent providers of oil and gas products and services. Oryx Energies
S.A. is a Swiss group of companies, majority-owned by private investment
group The Addax and Oryx Group Plc. Oryx Energies S.A. was formed by the
merger of AOG’s trading and downstream activities. Oryx Energies S.A.
has a presence in over 17 sub-Saharan countries and it sources, supplies,
stores and distributes the oil and gas products needed by consumers, businesses
and maritime operations across sub-Saharan Africa for over 30 years.