The proposed project consists of a senior revolving loan to an SPV managed by Barak Fund Management Ltd to provide trade and commodity finance to enterprises operating in Africa. The loan proceeds would invest alongside Barak's short-term African trade and commodity funds; the Project will focus primarily on supporting small and medium enterprises in the agricultural sector, although other sectors, such as consumer goods, will also be financed.
The total Project cost is approximately US$120 million, consisting of US$60 million in equity or junior capital provided by a Junior Investor and US$60 million in senior debt provided by IFC.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
Barak was established in 2009 by its two co-founders and part owners, Jean Craven and Prieur Du Plessis, and operates funds specializing in structured trade finance, commodity-backed transactions and other asset-backed projects across 30 African countries. Additionally, an impact investment fund based in the United States will be the equity or junior investor in the Project.
Barak Fund Management Ltd
+27 (11) 071 9124
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/