Release date: 17 August 2022
Promoter – Financial Intermediary
SAHANALA MADAGASCAR SALocation
Description
Support to develop the activities of a social enterprise in two regions of Madagascar for the professionalisation of agricultural and fishing activities of people living in environmentally sensitive areas to ensure sustainable income and environmental protection.
Additionality and Impact
The project supports the Promoter diversification by financing the development of value chains in remote and naturally sensitive rural areas, based on local community development and natural resource preservation.
The proposed operation is expected to be financed through the Neighbourhood, Development and International Cooperation Instrument (NDICI). The investment programme fully contributes to the objectives of the Global Europe-NDICI Trust Fund, which advocates for the development and strengthening of the private sector.
The operation is aligned with the EU indicative programme 2021-2027 in Madagascar, and with the priorities of the National Emergence Plan, promoting the integration of economic, social, and environmental aspects.
The operation supports social stability and environmental protection, both public good market failures, in increasing the resilience of rural communities, mitigating food supply volatility and reducing post-harvest losses. Through this operation, the EIB will contribute to the achievement of several UN's Sustainable Development Goals too.
The project will also generate further positive externalities in supporting community development (schools, basic health care, etc.) thanks to the company's benefits investments in social and environmental programs.
The EIB technical contribution supported the Promoter capacity to comply with international finance requirements.
Objectives
The project intends to support the value chain development of maize/rice and fish in two rural areas of Madagascar by professionalising and integrating local producers and communities into a federation to acquire economies of scale as off-taker and producer, while enabling nature conservation activities in their regions.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 20 million
Total cost (Approximate amount)
EUR 40 million
Environmental aspects
The Promoter, founded in 2010 at the request of a non-profit association managing marine and terrestrial protected areas in Madagascar, has the objective of complementing the natural reserve protection activities with surrounding populations' economic development to prevent the illegal use of protected land for productive use. The Promoter is supporting local producers and local communities by professionalising and integrating them into a federation to acquire economies of scale as off-taker and producer, while enabling nature conservation activities in their regions. The Promoter will be required to implement and operate the relevant investments in compliance with applicable national environmental law and similar EU requirements.
Procurement
The Promoter is a private company, not operating in the utility sector, active in rural development in Madagascar. Its procurement procedures will be assessed during appraisal.
Status
Signed - 17/07/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).