Original disclosure @ AFDB website
Updated in EWS Jun 15, 2020
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The project is a EUR 100 million, Cocoa Pre-Export and Value-Chain Finance Facility to support SUCDEN CI's participation in cocoa value chain in Cote d'Ivoire. SUCDEN CI is wholly owned subsidiary of SUCRE & DENREES Group (SUCDEN SA), one of the world's leading global soft commodity producer and aggregator headquartered in Paris, France. The Bank previously had granted a EUR 100 million facility to SUCDEN CI and its performance under that arrangement was satisfactory. The facility enabled SUCDEN CI to double its pre-financing and support small cooperatives and wholesalers (covering more than 7,500 small-scale farmers) thereby impacting positively the cocoa industry in Cote d'Ivoire. The proposed project is a package of three successive one-year facilities for a maximum exposure of EUR100 million at any given time during the tenor of the facility. This facility will allow the Bank to reach local cooperatives and thus the small farmers, without directly taking the risks on those entities, but through a seasoned commodity aggregator with sound knowledge in the cocoa industry and is able to take and manage the risks that come along in the sector. The pre-financing is expected to assist local suppliers, farmers grow their revenues, produce quality crops and develop drying, and storage facilities that will help them obtain better value for their produce.
The objective of the proposed Cocoa Pre-Export and Value-Chain Support Finance Facility is to assist in the development of the cocoa value chain in Cote d'Ivoire by providing financing to SUCDEN CI. The funds will be used to pre-finance local suppliers as well as finance cocoa working capital needs.
SUCDEN CI will use the facility to finance local suppliers and farmers in conformity with its own credit assessment and risk appetite. Women and youth driven co-operatives will be targeted under this facility.
ACCOUNTABILITY MECHANISM OF AfDB
The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing email@example.com, firstname.lastname@example.org, email@example.com, and/or firstname.lastname@example.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.