JAT Africa

pending

Jubaili Holding for Investment SAL and its subsidiaries (“Jubaili Agrotec” or the “Group”, http://www.jubailiagrotec.com/) is a leading importer, formulator/manufacturer and distributor of agrochemicals in Africa, including over 130 crop protection products (CPPs), to farmers, retailers, and other value chain players. The product portfolio includes crop protection products (i.e., insecticide, herbicide, fungicide), animal feed, veterinary drugs, fertilizer and sprayers and seeds. It reaches over 50,000 farmers and has c. 40 warehouses and over 100 retail depots. Jubaili business was originally founded in Lebanon in 1944. The Jubaili Agrotec Group branched out their operations into Africa from the family’s Lebanese business and established in Nigeria in 2002 with distribution operation and started manufacturing operations at two facilities in 2019 – in Ibadan and Kano in the manufacturing of CPPs and veterinary drugs. Both facilities are operated by a subsidiary – Global Alliance for Chemical Industry Limited (GACI) Nigeria and are semi-automated. The Ibadan facility is involved in formulation and filling of CPPs (i.e., Glyphosate and Paraquat) while the Kano facility is mainly focusing on equipment assembly (CPP sprayer). The Group imports the pesticides, inputs raw materials (i.e. active ingredient), resins; and locally purchases packaging materials like high density polyethylene (HDPE) for polyethylene terephthalate (PET) production. The Group has expanded its geographical footprint for the distribution and sale of its products in Ghana (2014), Uganda (2015), Tanzania (2016) and Kenya (2017). As of September 2021, the Group employs over 2,300 workers in five operating countries. The Group has separate subsidiaries for distribution, formulation / manufacturing and procurement in various countries. The Group’s products are sold to farmers directly via the company owned sales depots, warehouses, organized market days; and indirectly through dealers, farmer settlements/organizations/associations. The Group also has technical and agronomy staff that undertake field site visits, farm demonstrations, trainings, and other extension services to provide, among others, technical guidance on product utilization. The Group is looking to undertake a US$35 million expansion of their agrochemical manufacturing capacity in its 4 African countries to be implemented over the next 5 years (the “Project”). This senior loan comprises US$20 million capital expenditure (CAPEX) needs and US$15 million in permanent working capital. The plans can be summarized as follows:(a)   Nigeria – Establishment of a (i) formulation plant for insecticide in Ibadan and capacity increase in herbicide manufacturing facility in the existing facility in Ibadan and a (ii) new formulation manufacturing capacity for veterinary drugs in Kano within the existing facility. (b)   Ghana – Establishment of a greenfield facility for manufacturing (formulation) herbicide, powder and liquid packaging and sprayer assembly in Accra. Land (40,000 m2 plot) has been leased for the facility. The facility will be developed and operated by a subsidiary - GACI Ghana.(c)   Uganda – Establishment of a powder and liquid packaging facility in Kampala. Land (16,000 m2 plot) has been leased for the facility. The facility will be developed and operated by a subsidiary - GACI Uganda.(d)   Tanzania – Establishment of a powder and liquid packaging facility in Dar es Salaam. Land is still to be identified for the facility. The Ibadan facility is located in an industrial area. However, there are communities within few hundred meters of the facility. Similarly, although all proposed facilities within this proposed investment will also be located in designated industrial land plots, there can be neighbouring residential areas around these plots.