- With this large-scale financing operation, the EIB will support the private sector and the development of an independent, competitive agri-food sector in Morocco
- This project will have a high economic and social impact, including through the creation of 1 662 direct and indirect jobs in a number of regions in Morocco
The EIB has decided to provide €25 million (around MAD 266 million) in support to Zalar Holding, Morocco's leading company in the poultry sector which is active across the industry's entire value chain.
This large-scale financing will serve to strengthen the Group's vertical integration with a dual objective targeting performance and competitiveness. This financing will cover: the enlargement of storage facilities for grain from the company's trading activity to support animal feed production capacity, the construction of stock farms, hatchery capacity extensions, the construction of breeding farms and the modernisation of some existing farms, all of which are located in Morocco's four main consumer regions.
“This key loan reflects our increased support for the private sector and agri-food production. With such projects, we are helping businesses make sustainable investments to sharpen their competitiveness and we are supporting their development on the international market”, said EIB Vice-President Emma Navarro at the signing ceremony. She added: “Developing infrastructure by modernising processes also generates new jobs and training opportunities in rural regions. In this way, we are improving the daily lives of local residents and opening up future opportunities for younger generations.”
“We are proud to enjoy the confidence of the EIB, a true European development bank that shares our vision and promotes sound, sustainable investment projects in Africa”, stated Zalar Holding CEO Ali Berbich.
This financing is fully in line with the objectives of the EU's External Lending Mandate and with Morocco's Industrial Acceleration Plan 2014-2020 to foster the emergence of champions in high potential sectors. Particular attention was paid to the project's environmental and social aspects and best international standards will be applied in terms of technical monitoring and environmental management.
The development project financed by the EIB will have a significant economic and social impact, especially through the creation of 448 direct jobs at Zalar Holding and 1 214 indirect jobs in a number of Moroccan regions, which will help improve the lives of rural dwellers in practical terms. This development project will also provide an opportunity for special training for employees of Zalar Holding.
The investment bank Ascent Capital Partners and the law firm DLA Piper exclusively provided Zalar Holding with financial and legal advice, respectively, in relation to this operation. The EIB was advised by the law firm ASAFO & Co.
As a strategic partner of Morocco, the EIB has provided more than €5 billion (over MAD 53.5 billion) over 10 years in support of projects in key sectors of the Moroccan economy such as energy, transport, water and sanitation, education, health, social housing, industry, business support and innovation.
Zalar Holding
Founded in 1974, the Zalar Group is Morocco's leading company in the poultry sector and the only operator that is vertically integrated across the entire poultry meat value chain. The Group has a leading market share across five business segments: trading, animal feed, hatchery, the broiler industry, and slaughtering and meat processing. The Group has 2 200 employees and its business activities are spread across the country, particularly around the strategic regions of Casablanca and Fes.
