BOVIMA (IFC-38036)

Countries
  • Madagascar
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
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.
Borrower
Bovima-Agrifeed
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 3.50 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)
$ 15.30 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
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

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
  • International Finance Corporation (IFC)

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

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.

Contact Information

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/