YoKuku Mezz (IFC-44775)

Countries
  • Uganda
Geographic location where the impacts of the investment may be experienced.
Specific Location
Buwazi, Semuto, Kampala
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."
Voting Date
Jun 15, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
HMH RAINBOW LIMITED
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 Amount (USD)
$ 7.00 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)
$ 12.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 24, 2021

Disclosed by Bank May 12, 2021


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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.

"HMH Rainbow (or the “company”) is a integrated poultry producer in Uganda, which produces chicken feed, rears chicken, and processes chicken into frozen or chilled products, sold under the YoKuku!, Enkoko and Kuku Feeds brands. In 2012, its first production facilities were established on approximately 300 m2 site in Semuto, 60 kilometers (km) away from Kampala, and consisted of a broiler farm, a feed mill, and an abattoir facility, hereafter referred to as “farm #1 complex”. Currently, the company has 3 broiler farms all situated in Semuto. Broiler farm #2 and #3 are located within a radius of 5 to 10 km from farm #1 complex. Each broiler farm consists of four broiler houses (or sheds) for the rearing of chicken. In total, the company has 12 broiler houses. Broiler farm #1 is an open shed design while broiler farms #2 and #3 are temperature controlled shed designs. The farm #1 complex also hosts the engineering workshop, the main administrative office, and accommodations for the expatriate staff. The company buys all day-old-chicks (DOCs) from third-party providers, raises them on average for 35 days with own produced feed until the birds mature, and are processed in its own abattoir. The products are stored in the company’s cold storage facility on site, transported via refrigerated trucks to retail stores or customers facilities. The poultry feed is made primarily from soy, maize, and other micro-nutrients by its own feed mill. Grain inputs are sourced from a variety of domestic suppliers. These include suppliers with whom HMH Rainbow has long standing supply agreements (tier I primary suppliers), regionally based traders whom they know (tier II primary suppliers) and lastly, when needed, those operating in the spot market (tier III primary suppliers). Tier 1 and 2 suppliers typically supply over 90% of the grain needs in any given year. See section on PS1 supply chain for details.  IFC is considering a USD$7.0 million convertible C-loan to an ongoing $10.9M investment plan to grow the vertical integration of HMH Rainbow’ operations, with the objective to improve capacity utilization and increase margin contribution. This proposed investment consists of (i) the construction of 4 new broiler farms (or 16 broiler houses); (ii) upgrade the current abattoir, mainly with added cold storage capacities, packaging capacity, and effluent treatment plant; and (iii) upgrade the current feed mill with additional maize silo to enable additional storage of maize and increase external feed sale."                                                  

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

HMH Rainbow is a joint venture between Alykhan Hudani (66.5% shareholding), a Ugandan businessman, and Rainbow Farms Investments Proprietary Limited (33.5% shareholding), a wholly owned subsidiary of RCL Foods Ltd., a listed South African food manufacturer

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - HMH Rainbow Client Agriculture and Forestry

Contact Information
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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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