DFC V

closed

The Fifth Societe Financiere de Developpement (SOFIDE) Project will finance the foreign exchange component of the fixed capital investment requirements of subprojects approved by SOFIDE in the agriculture, transportation and industrial sectors, and working capital up to a total of US$3 million for existing high economic priority projects in SOFIDE's portfolio. At least US$7.5 million of the proposed credit would finance agricultural projects. The Credit would also provide up to US$230,000 to finance staff training and some equipment for SOFIDE. In addition to current uncertainties about future economic developments in Zaire, the main risks of the project relate to the impact on SOFIDE's subborrowers of: (a) the shortage of foreign exchange for importation of raw materials and spare parts; (b) the rate of inflation in Zaire. The working capital component is designed to alleviate the impact on the output capacity of qualified SOFIDE subborrowers of low imported input stock levels due to reduced availability of foreign exchange.