IFC’s loan will help CEDIAM complete upgrades to its production facility, purchase the equipment it needs to increase the number of mangoes it collects, and add up to 1,000 smallholder mango farmers to its already 2000-strong farmer supply chain. The funding will also support 300 direct and indirect jobs at CEDIAM.
IFC’s investment of up to US$2.4mn (€2mn) consists of a senior A loan of up to US$1.2mn (€1mn) from IFC’s account and a concessional loan of up to US$1.2mn (€1mn) from IFC in its capacity as implementing entity for the Private Sector Window of the Global Agriculture and Food Security Programme (GAFSP).
The funds, which will also provide working capital for CEDIAM, are expected to boost the company’s exports of mango puree and concentrate on Europe and other markets. IFC will also provide CEDIAM with advisory services to help it strengthen its corporate governance, and financial management, and environmental, and social risk management practices.
Farmers will be supported directly with training to improve their agricultural methods, not only in mango farming, but also in intercropping other varieties to boost their incomes. The advisory services support is co-funded by the Global Agriculture and Food Security Programme (GAFSP).
“This partnership will help our company become more modern, sustainable, and profitable. It will positively impact local mango production and transformation in Mali and benefit all stakeholders in this value chain. It will also improve our corporate capacity and allow us to meet international market standards,” said Diadié Sankaré, CEDIAM’s chairman.
“IFC’s partnership with CEDIAM will create jobs and strengthen Mali’s important agriculture sector, which contributes significantly to the country’s employment and GDP. The project also highlights how IFC and the World Bank are working together to support the resilience of job-creating, private sector companies in the Sahel region particularly during severe market challenges brought by COVID-19,” said Aliou Maiga, IFC’s director for West and Central Africa.
IFC’s investment is part of the World Bank-IFC joint implementation plan for agribusiness in Mali, which supports partnerships between smallholder farmers and agribusiness players. The World Bank-funded projects, through the Mali Support to Agro-Industrial Competitiveness Project (PACAM), aim to address infrastructure challenges by rehabilitating rural roads and building collection facilities.
The US$30mn PACAM programme has already rehabilitated 300km of rural roads in fruit production areas in Mali and conducted campaigns to improve the quality of mangos for export.
“Expanding CEDIAM and increasing the competitiveness of Mali's mangoes internationally will create more opportunities and revenues for Malian farmers, one way that the World Bank Group is working to create markets and strengthen local rural economies in the country,” said Soukeyna Kane, World Bank country director for Mali.
IFC’s investment benefited from on-the-ground support and flexible funding from IFC’s Fragile and Conflict-affected Situations (FCS) Africa Unit and its Conflict Affected States in Africa (CASA) initiative, which is supported by Ireland, the Netherlands, and Norway.