Ma’s Tropical Food - CFC/2015/06/0071 Submitting Institution Ma’ Tropical Food Processing ltd Location Sri Lanka Commodity Dairy products, dehydrated vegetables, kitchen oils, fruits , juices Total Cost USD 1,111,110 CFC Financing USD 407,407 Co-financing USD 703,703 The project is about a new business entity in the north of Sri Lanka: North Lanka Family Food (Pvt.) Limited (NLFF), which will function as a fully owned subsidiary of MA’S Tropical Food Processing (Pvt.) Limited which is domiciled in Sri Lanka. It builds on a pilot operation, engaged in producing bottled sterilized milk exclusively marketed in the Northern Province. It is proposed that a multi-faceted medium sized processing plant be established in Iyakkachchi in the Kilinochchi District to produce a range of high quality food and beverage products for the domestic and exports markets. The processing facility will be complimented by a ten acre base model farm and a small conference and training facility with accommodation.
The facility will be located in Iyyakkachchi where it has a central location in the Northern region with good access to farmer communities. Water is an important factor in the food processing industry and the location earmarked for the facility has an abundance of water all the year round. The key product line will be dairy products (+50% projected sales), followed by dehydrated vegetables and then by edible oils, fruit juice and grains. The dairy market in Sri Lanka is enjoying significant growth as rapid urbanization and as more health conscious and affluent consumers demand dairy based products such as liquid pasteurized milk, cheese, yogurt and ice cream. MA’s wants
to service this rising consumer demand with the intended dairy factory. The commercial objectives are to gain 25% of the Northern region’s dairy market, be the market leader in providing gourmet culinary oils and related foods in Sri Lanka, and be the number one supplier of dehydrated vegetables in Sri Lanka. By doing this, the company expects to provide a sustainable livelihood for farmers in the region by promoting good agricultural practices and traceable supply chain. The non-binding term sheet was signed in November 2015.
Accelerating Lending to Food and Agri Sector in Eastern Africa - CFC/2015/07/0028 Submitting Institution Financial Access Capital Management BV Location Amsterdam, The Netherlands Commodity Agricultural commodities Total Cost USD 11,500,000 CFC Financing USD 1,200,000 Co-financing USD 10,300,000 The project promoter and potential borrower is Financial Access Capital Management BV, an Amsterdam based company which provides supply chain finance in the agribusiness sector in emerging market economies. The project entails the set-up of a factoring business in Kenya and Uganda. The CFC loan, for an amount up to USD 1,200,000, will be used to finance about 10% of the project costs, while the remainder will be financed by promoters (USD 1,000,000); a revolving facility from Advance Global
Capital (USD 3,000,000); a loan from Dutch Good Growth Fund (USD 850,000); a grant from Dutch Good Growth Fund (USD 150,000); a zero interest loan and a grant from Africa Enterprise Challenge Fund (USD 300,000 respectively); an equity investment and a loan from ICCO (for an amount up to USD 250,000 respectively) and other financiers to be identified. The project has an economic and social impact since it will enhance financial inclusion in the private sector by improving access to
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finance to SMEs. Factoring services are an innovative and alternative financing instrument in Kenya and Uganda, and will provide financing at a lower cost as compared to the common practice of borrowing funds from money lenders. It is estimated that a total of 120 suppliers and 120 distributors will participate to the Project in Kenya and Uganda. In terms of job creation, the project will create additional 11 jobs in Uganda and 16 in Kenya. The project is under appraisal and a term sheet is under negotiation with the proponent.