Agroserv Industrie SA
BIO has granted a EUR 3 M loan to Agroserv, a Burkinabe corn milling company.
Amount
€ 3,000,000.00
Type of investment
Debt
Development impacts
- Local economic growth
- Private sector consolidation/innovation
- Food security & rural development
- Promotion of ESG best practices
Beneficiary locations
Investment field
Enterprises
Activity
Agroserv Industrie is a corn milling company in operation since 2008 in Ouagadougou (Burkina-Faso) that currently produces and sells gritz, semolina, fine flour and corn bran.
Agroserv is taking a proactive role in the early stages of the national agricultural value chain, providing technical and financial support to a large network of small producers and farmer organisations from which it buys raw materials. Similarly, the company's products are aimed at the local market, helping to ensure local food security.
Development impacts
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Local economic growth
Indirect Job creation: creation of jobs upstream and downstream amongst: (i) small growers involved in the production of maize and soya, (ii) herders who will access additional bran to feed their animals and develop their activities, (iii) suppliers of Agri inputs and equipment; (iv) local traders of grains as they will have access to more product cereals to trade.
Direct Job creation: Agroserv plans to increase the number of its employees by 20%
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Private sector consolidation/innovation
Production technology/know-how transfer: Acquisition of state-of-the-art production facility, accompanied by a training package for the staff
Expansion of the range of products that are locally produced and improvement of the quality of products.
This project aims to connect small growers with industries (corn milling companies, animal feed producers, etc.), banks (to fund agricultural inputs), input suppliers (seeds, fertilizers, chemicals, etc.) and agronomists (technical support to small growers).
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Food security & rural development
The small growers’ networks will be expanded to ensure the supply of good quality corn, improving the economic opportunities for farmers in rural areas
Agroserv offers a diverse range of new products to households and institutions, increasing the availability of food for national consumption.
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Promotion of ESG best practices
Several recommendations in the Environmental and Social Action Plan aim at improving the Company’s social practices, the management of air and waste, the management of the supply chain and the community around the factory.
E&S Impact
Agroserv agreed to take steps to formalise its Environmental and Social (E&S) practices, by setting up an Environmental and Social Management System with the support of a consultant. These steps will also include a responsible supply chain policy and a stakeholders’ engagement programme for the local communities.
The company will hire key people for Quality Health and Safety, as well as for Human Resources, and the working conditions of the employees will be strengthened.
The construction of the new plant will respect the local and international requirements.
The company will undergo an HACCP audit to ensure food security and will work on a waste management plan.
Current situation
At the direct operational level, Agroserv’s risks are relatively limited and can be mitigated. Risks are slightly higher for the new expansion project, given the construction risks.
Risk Category: B+
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