Country: Senegal
Type of investment: Vegetables dehydration plant starting with onion
Use of Proceeds: Farming, processing and export of dehydrated onion to Africa and Europe
Financial close: October 2019
Tenor: 8 years
Type of Investment: Senior Secured Debt
S&E Category: B
On 13th October 2019, AATIF announced an investment to help Société Africaine d’Ingrédients (SAF Ingrédients) delocalize an onion dehydration plant in Senegal, in participation with the IFC. The plant will be the first of its kind in Africa and will help create over 200 jobs and boost the country’s agriculture exports.
Dijon Céréales is a large French agricultural cooperative from Franche-Comté created in July 1990 out of the fusion of 13 cooperatives, owned by 3,800 farmers and employing 515 professionals. Dijon Céréales is one of the large agri-business groups in Bourgogne-Franche-Comté region in France.
This project will be operated by a French Senegalese Joint-venture “Société Africaine d’Ingédients” created in 2019 between Dijon Céréales (a French cooperative in Dijon) and the “Club des Investisseurs Sénégalais” (“CIS”).
The loan cumulatively amounts to EUR 13m to finance capital expenditures for an onion dehydration plant to be installed in St. Louis in northern Senegal. Support from AATIF and IFC will help SAF Ingrédients develop an 800-hectare onion farm and establish an out-grower network of onion farmers.
Technical Assistance Project Highlight
Establishment of an onion outgrower scheme
Challenge: SAF Ingrédients is constructing an onion dehydration plant Senegal and aims to source over 80% of its onion supply from local smallholder farmers, for which the company seeks to establish an outgrower scheme and implement capacity development measures for producers to ensure a reliable offtake.
TA Intervention: To establish an onion outgrower scheme and capacitate SAF Ingrédients’ staff members to support onion farmers to ensure a local supply of high-quality onions and implement regenerative agricultural practices.
Result: As a result of the TA Measure, key SAF Ingrédients’ staff members will have been recruited and fully capacitated to manage day-to-day operations. The outgrower scheme will be fully operational and the targeted farmers in the outgrower network will be able to produce onions of improved quality at scale, securing SAF Ingrédients’ local supply of onions.
Primary Agricultural Production*
340ha
At least 340ha of onion cultivated
Local processing*
150 MT p/d
Daily onion processing in MT
40,000 MT p/a
Processing capacity (annual/anticipated): up to 40,000 MT per year
Outreach to agricultural producers*
100%
Percentage sourced or produced locally
600+
Number of smallholders sourced from per annum
Number of employees*
220
SAF‐Ingredients’ operations will create approximately 70 permanent employment opportunities to local communities and about 150 temporary workers (post harvesting helpers).
* Figures are projections and estimates as the plant is not yet operational.
TECHNICAL ASSISTANCE FACILITY
The TA Facility has supported SAF Ingrédients through the implementation of two TA project in total since 2022, this includes one ongoing rapid appraisal study to assess the impact of the AATIF investment.
TA Facility Projects
2022
Establishment of an onion outgrower scheme
2024
Rapid Appraisal of AATIF investment in SAF Ingrédients
- Figures are based on latest available self-reported data by investees and data collected by AATIF’s collaboration partners
- Figures are subject to change as and when additional information becomes available
- Figures reported here are not replacing rapid appraisals / impact evaluations that are done in addition
