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IFC APPROVES FINANCING FOR FOUR AFRICAN COMPANIES


Asimina Caminis


The International Finance Corporation (IFC) has approved US$2.1 million in loan financing for fish-processing companies in CŮte d'Ivoire and Uganda and a cold storage facility in The Gambia, as well as a US$600,000 equity investment in a Ugandan insurance company. The loans will be made by IFC's Africa Enterprise Fund (AEF), which finances smaller projects with costs between $250,000 and $5 million. IFC, a member of the World Bank Group, is the largest multilateral institution providing financing for private sector projects in developing countries. IFC's Africa Enterprise Fund to Finance Expansion of Ivorian Seafood Producer IFC's Africa Enterprise Fund is to provide a US$650,000 loan to help finance the acquisition of three additional fishing vessels by PÍchazur, a fish-processing company in CŮte d'Ivoire. The expansion of PÍchazur's fishing fleet from five to eight vessels will cost about US$2 million. It will enable PÍchazur, CŮte d'Ivoire's leading processor and exporter of shrimp, to increase its catch o
f small ocean fish, such as sardines, horse mackerel, and herring, from 2,000 tons to 5,600 tons annually. The fish will be sold in the domestic market, generating substantial foreign exchange savings for CŮte d'Ivoire, which currently depends upon imports to satisfy domestic demand for fish. PÍchazur received a previous loan from the Africa Enterprise Fund in 1989. .


IFC's Africa Enterprise Fund to Provide Loan for Cold Storage Facility at Banjul Airport in The Gambia A US$800,000 loan to be provided by IFC's Africa Enterprise Fund will help finance the construction of a cooling, packing, and cold storage facility for fruits and vegetables at Banjul Airport in The Gambia. Two local farms that produce over 65% of The Gambia's fruit and vegetable exports will be the principal users of the facility, Radville Gold Stores Ltd (RCS), which is expected to cost US$2.4 million. The Banque Internationale pour le Commerce et l'Industrie du SČnČgal will provide a loan of US$800,000 for the project. IFC's Africa Enterprise Fund to Help Finance Expansion of Fish-Processing Company in Uganda Nge-Ge Limited, a fish-processing company in Uganda, is to receive a US$650,000 loan from IFC's Africa Enterprise Fund to help finance a US$4.7 million expansion program. A wholly owned subsidiary of Fourways Investment Ltd., Nge-Ge Limited plans to increase its daily production from 15 tons to 45 t

ons by establishing a second fish-processing line at Lake Victoria, near Port Belle. Nge-Ge Limited will buy fish from local fishermen to produce 3,200 tons per year of portion-sized frozen fillets for export to Europe and the Middle East. The Development Finance Corporation of Uganda is providing a loan of US$500,000 for the project. Other financing will be provided by Barclays Bank of Uganda and Fourways Investment Ltd. IFC to Invest in Insurance Company in Uganda IFC has approved a US$100,000 equity investment in Jubilee Insurance Co. Uganda Ltd. (JICU), a private insurance company in Uganda that is increasing its share capital from US$80,000 to US$500,000 to finance an expansion of its operations. JICU will initially concentrate on offering a range of non-life insurance products to corporate clients. IFC will hold 20% of JICU's equity. The other shareholders are the Aga Khan Fund for Economic Development (35%), Jubilee Kenya (35%), and the Development Finance Company of Uganda (10%). IFC's investment in J

ICU will contribute to the revitalization and development of Uganda's insurance industry. IFC has assisted the Ugandan Government in identifying and implementing needed reforms in the industry, including updating the legislative framework and improving regulatory capability. (30)