Cajou Espoir SA
- Country
- Togo
- Technology
- N/A
- Business model
- SME
EDFI AgriFI Invests €3 million in Cajou Espoir, Togo’s leading cashew processor, to support organic production and enhance sustainability in the value chain. This investment is part of the ACP regional window, supported by the secretariat of the Organisation of African, Caribbean and Pacific states (OACPS).
Contracting date: July 2023
Countries: Togo
Sector: Agri SME – Cashew
Allocation: ACP Regional Window
Total AgriFI Financing: EUR 3 million
Environmental and Social Category: B+
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Project overview
Cajou Espoir is Togo’s largest processor of raw cashew nuts, processing 15% of the country’s annual production and exporting to the European market. A transition towards fully organic production is underway, for which the company has assisted in setting up farmer cooperatives and obtained organic and Fairtrade certification. Cajou Espoir strives to generate local employment and improve livelihoods.
Funding objective and impact
With EDFI MC AgriFI’s financing, Cajou Espoir aims to increase its sourcing from associated farmer cooperatives and enhance processing capacity by investing in automation of the plant. Land acquisitions will be made to develop own plantations, hedging against price volatility and sourcing disruption. Investments will be made in machinery for the production of cashew by-products and renewable energy generation.
Investment rationale
EDFI MC AgriFI’s funding is additional by providing long-term capital, which Cajou Espoir will use to reach its growth targets. The investment will reinforce a vertically integrated cashew value chain benefitting smallholder farmers and will lift the company’s operations up to international environmental and social standards.
Environmental & Social rationale
E&S risk category is medium high, B+, based on general limited potential adverse social or environmental impacts that are mainly site specific and can be mitigated by normal industry practices. The relevant IFC Performance Standards are PS1 to 6 (Management, Labour, Resource Efficiency, Community, Land Acquisition and Biodiversity).
PS 7 and 8 (Indigenous People and Cultural Heritage) are not applicable.
E&S risks will be mitigated by the implementation of an Environmental and Social Action Plan.
- Financial instrument
- Long-term debt
- Amount
- EUR 3 million
- Year
- July 2023