Zimbabwe - Olivine Industries Limited


Project Summary

Approval Date 25 Mar 2020
Sovereign / Non-Sovereign Non Sovereign
Sector Agriculture and Rural Development
DAC Sector Code 32161
Commitment U.A 6,068,898.55
Status Approved

Project General Description

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.

Project Objectives

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.

Beneficiaries

The main beneficiary of the project is Olivine Industries Limited and ultimately the consumers of Olivine's products.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-ZW-AAG-005
Last Update 29 Sep 2020

Export

Contact Details

Email private-sector@afdb.org

Geographic Location

Country Zimbabwe