Société de Cultures Légumières S.A.
BIO has granted a € 4 M loan to Société de Cultures Légumières S.A., a Senegalese agribusiness.
Amount
€ 4,000,000.00
Type of investment
Debt
Development impacts
- Local economic growth
- Private sector consolidation/innovation
- Food security & rural development
Beneficiary locations
Investment field
Enterprises
Activity
The Société de Cultures Légumières (SCL) produces, packages and exports fresh vegetables to the UK during the European winter season. During the European summer, the company produces and sells vegetables in Senegal.
SCL sells to its strategic partner in the UK (Barfoots of Botley, also a shareholder of SCL) under a Supply Agreement. Barfoots is a producer and distributor of fresh vegetables with an annual sales of £ 100 m and sells to various large UK retailers. The cooperation between SCL and Barfoots is a constructive and fruitful relationship, whereby SCL does not run the market risk (as prices & quantities are fixed), and ‘only’ runs the production risk. Barfoots is committed to guaranteeing the sales of SCL as Senegal is an increasingly important supply basis for Barfoots. For its most important crop sweet corn, SCL provides around 30% of Barfoot's requirements.
The expansion project concerns the development of 690 ha (out of 900 ha Ngalam land) of land to produce sweet corn, sweet potatoes, and butternut. The land is located 15 km to the east of Saint Louis (northwestern part of Senegal), and 40 km from Diama site and is part of the rural communities Fass and Gandon. The project includes a pumping station (for irrigation purposes), expansion of the packing house and infrastructure.
Inclusive the expansion Project, SCL farms will be on 1,260 ha of land, divided over two main farms Diama and Ngalam (and 2 small farms).
Development impacts
-
Local economic growth
Employment effects: An additional 150 employees will be hired within 3 years (added to the 326 persons currently employed); and up to 450 daily workers (150 FTE) in a decentralized area;
Net export effects: Main goal is export to UK of 80% of total produced vegetables; SCL estimates to contribute € 4.5 million hard currency income per year (at full capacity); SCL is the third vegetable exporter in Senegal
-
Private sector consolidation/innovation
Production technology: Different experts on specific cultivation of crops (sweet potato, asparagus) have been consulted, as well as experts on irrigation issues. The extension project includes an intensive R&D project on the development of improved genetic sweet potato material adapted for Senegal circumstances.
Market structuring effects:
UK quality norms required in production, considerable testing of production etc - all of which improves the production standards;
As SCL is located in an isolated area, its presence helps develop the agribusiness sector, which is not well developed -
Food security & rural development
smallholders involved in the production, which will further improve the living standards in the region
SCL creates employment for (daily) workers are employed in decentralized areas
Basic food production (onions, peanuts, sweet potato) for the local market (up to 28% of utilized land)
View more of our investments in this region
Investment Companies & Funds
African Rivers Fund IV
10,000,000.00
Angola, Democratic Republic of Congo, Uganda, Zambia
05/12/2024
Equity
