Nespresso East African Coffee Project (IFC-36083)

Countries
  • Ethiopia
  • Kenya
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 22, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
NESPRESSO SUSTAINABILITY INNOVATION FUND
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 6.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 28, 2018

Disclosed by Bank May 11, 2016


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

PROJECT DESCRIPTION

The project consists of a US$3 million loan to Nespresso (guaranteed by Nestlé S.A.) and US$3 million grant from the World Bank’s BioCarbon Fund (to be disbursed through the Nespresso Sustainability Innovation Fund) to support smallholder coffee farmers and producer wet mill businesses in Ethiopia and Kenya involved in Nespresso’s AAA Sustainable Quality Program (AAA Program). The project will be implemented on the ground by TechnoServe, and will entail agronomy and sustainability training to farmers and wet mill businesses and planting of shade trees. The scope of this project targets farmers and wet mill businesses in the regions of Sidamo B (in Southern Nations, Nationalities, and Peoples' Region, SNNPR) and Sidama A (in Oromia Region) in Ethiopia, as well as in central and western Kenya. The agronomy and sustainability training will target 33,000 AAA farmers and 125 wet mill businesses in Ethiopia, and 10,000 AAA farmers and 60 wet mill businesses in Kenya. In addition, shade tree planting activities will also target farmers and wet mills in the same AAA areas who previously participated in TechnoServe’s training (as part of Gates or Nestlé-funded programs, totaling around 25,000 farmers and 20 wet mills). In Ethiopia, seedlings will be grown in government-owned nurseries, from where they will be transported to farmers and wet mill businesses for planting. In Kenya, seedlings will be grown in cooperative-owned nurseries.

Investment Description
  • International Finance Corporation (IFC)
Contact Information

Mr. Paul Stewart
Regional Director Coffee Initiative
TechnoServe
PO Box 100598
Addis Ababa, Ethiopia
Tel: +251 16 63 00 17
E-mail: mailto:pstewart@tns.org

Mr. Alexandre Couesnon
Coffee Sustainability Project Manager
Nestlé Nespresso S.A.
Avenue de Rhodanie 40
1007 Lausanne, Switzerland
Tel: +41 21 796 94 11
E-mail: mailto:alexandre.couesnon@nespresso.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/