|Approval Date||25 Mar 2020|
|Sovereign / Non-Sovereign||Non Sovereign|
|Sector||Agriculture and Rural Development|
|DAC Sector Code||32161|
The present project is a senior secured loan to Olivine Industries Limited to finance the main investments of its 7-year expansion and modernization program (2019 to 2026). This program, the total cost of which is estimated at US $ 22.58 million. Olivine Industries Limited is one of the largest consumer goods companies in Zimbabwe, its main products being cooking oil, margarine and soap. The proposed project will significantly boost private sector confidence in the market as long-term investments are limited in all sectors. It will make a significant contribution to the food and agriculture sectors, consisting of: i) reducing imports of raw materials, which will save foreign exchange, ii) introducing advanced technologies to improve productivity and competitiveness of Olivine products in the country and the region, iii) increase food exports to neighboring countries, which will increase foreign exchange earnings, iv) develop the production of tomatoes and soybeans through the increased use of contract farmers, while creating more jobs; and v) demonstrating the Bank's commitment to the country's private sector, which will encourage investment in the economy.
The objective of the project is to provide a 7-year loan (including a 2-year grace period) of up to USD 8.25 million to support the expansion of Olivine's consumer product lines (margarine, cooking oil and tomato sauce) and increase its local production while using the vertically integrated business model to develop local tomato and soybean production.
The main beneficiary of the project is Olivine Industries Limited and ultimately the consumers of Olivine's products.
African Development Bank
|Last Update||21 Jan 2021|