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
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.
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: Danilhoussen Ismael
Tel: +261 32 07 845 80
Mailing Address: Groupe SMTP Lot 01A Ambohibao, Antehiroka, Antananarivo 101 Madagascar
ACCOUNTABILITY MECHANISM OF IFC
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