BOVIMA (IFC-38036)

Countries
  • Madagascar
Geographic location where the impacts of the investment may be experienced.
Specific Location
Fort Dauphin
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Bovima-Agrifeed
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 3.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 15.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 21, 2019

Disclosed by Bank Mar 20, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the proposed investment is a US$7 million subordinated C Loan from IFC and GAFSP to BOVIMAAGRIFEED in Fort Dauphin, southern Madagascar. The greenfield project entails the development of the first modern feedlot and abattoir in Southern Madagascar. The greenfield operations would procure cattle and goats from local herders in the project area and fatten them for 1-4 months in a feedlot with locally produced animal feed; thereafter, the animals would be slaughtered in a newly constructed abattoir. The Companies would produce carcass beef and goat meat for exports, mainly to the Middle East. 

Project is located in Fort-Dauphin, in a remote part of Southern Madagascar, one of the poorest regions of the country

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is estimated at US$15.3 million. The proposed IFC investment is a C loan for IFC’s own account of US$3.5 million and a C loan of US$3.5 million for GAFSP’s account.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Bovima-Agrifeed is part of SMTP Group Madagascar, a conglomerate of 20 corporations and approximately 1,300 employees and annual revenues of around US$33.5 million. In the agribusiness sector, the Group owns the following key subsidiaries, Agrival (animal feed), Agrifarm (day old chicks for poultry/ broilers) and Mabel (slaughterhouse) and the proposed greenfield project Bovima-Agrifeed (Goat and Beef feedlot and abattoir).

The Project is sponsored by Mr. Danilhoussen Ismael and his son Mr. Shahim Ismael (together the Sponsors). Mr. Ismael is a successful businessman in Madagascar who started as a trader and importer / distributor of spare parts/ paints. He moved thereafter to the manufacturing of plastics when he created Société Malgache de Transformation de Plastiques (SMTP). Together with his son Shahim Ismael, he now owns the SMTP Group, a leading conglomerate of about 20 companies involved in industrial plastics, bakery, poultry, animal feed, real estate, automobile dealership.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - SMTP Group Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Company: BOVIMA
Contact: Danilhoussen Ismael
Title: Sponsor
Tel:  +261 32 07 845 80
Email: ismaeld@groupe-smtp.com
Mailing Address:  Groupe SMTP Lot 01A Ambohibao, Antehiroka, Antananarivo 101 Madagascar

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/

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How it works