Earlier this year the IFC proposed, and the Board of Directors approved, an investment in the Dutch Afriflora Group. The agreement was signed on April 13, and the investment made a month later, on May 13, 2015. The investment consists of an IFC and MCPP senior secured €90 million (US$112 million equivalent) loan.
Afriflora is a family-run manufacturer and marketer of cut-rose products based in Ethiopia. The Group’s main operation is located in Ziway, near Lake Ziway, and consists of approximately 260 hectares of greenhouses. A second, 25 hectare farm is located 60km away near the village of Koka. A new proposed farm near Adami Tullu, less than 5km away from the Group’s Ziway operations, currently stands at approximately 40 hectares, which management hopes to expand by an additional 135 hectares. The Group has approximately 8,000 employees and mainly serves the European Flower market.
Afriflora has a very close and healthy relationship with the surrounding community, primarily developed from a Corporate Social Responsibility (CSR) perspective. Afriflora is the biggest employer in the area and provides accessible health care and education facilities for all community members. Specifically, the Group founded and maintains a full service hospital which is currently providing services for all community members and promoting health care in the region. In collaboration with the government, the Group is also engaged in family planning initiatives, nutrition and HIV prevention. The Group also started and maintains the Sher school, which serves approximately 5,000 students both from employee families and those in the general community.
More information on this specific loan can be found on the IFC website.