Société de Distribution de Matériel Avicole

Debt : April 2013

BIO has granted a € 3 M loan to the Société de Distribution de Matériel Avicole S.A. (SEDIMA), an agribusiness in Senegal.

Amount

€ 3,000,000.00

Type of investment

Debt

Development impacts

Local economic growth
Private sector consolidation/innovation
Food security & rural development

Beneficiary locations

Africa: Senegal

Investment field

Enterprises

Activity

Agribusiness - Wheat mill

Organisation

Société de Distribution de Matériel Avicole

Website

http://sedima.com/

Domicile

Senegal

The project is a 3 million investment of BIO as part of an 8,5 million € investment in a Wheat mill. The sponsor of the project is Sedima SA, a well-known agri-business company in Senegal.

BIO has already financed Sedima as part of the investment in an animal food processing unit. Mr Ngom, the main shareholder (98%) and founder of Sedima, is an entrepreneur who started his business in 1976 by raising chickens.

Development impacts

Local economic growth
Decrease of the country's dependency on imports: Wheat is mainly imported in Senegal; the purchase of the wheat mill decreases wheat imports
Local demand: the company supports the rising demand for bread in the Senegalese market
Private sector consolidation/innovation
Incorporation of the whole value chain by vertical integration: next to Sedima's other activities, wheat bran is a byproduct used for the production of animal food.

Expansion of the range of goods offered: The project will increase the local wheat production for bakery flour, patisserie flour and wheat bran (for animal food processing unit).

Increased competition: SEDIMA plans to produce 10% of the Senegalese market with the wheat mill; however, they have no price-setting power and demand is expected to rise;
Food security & rural development
The current business of the company is chicken farming (reproduction, hatchery, meat, eggs) and a food transformation factory. The new mill will supply extra flour to satisfy the Senegalese market, which is important as bread is a basic food product