Twiga Foods Ltd.

pending

 Twiga Foods is a cold-chain fresh fruits & vegetables and fast-moving consumer goods distributor in Kenya. Through its unified digital platform, the company connects farmers and retail vendors enhancing supply-chain efficiency to make food cheaper and more accessible. Twiga was launched in 2014 and first established its proof of concept with banana distribution in Nairobi before overlaying additional fresh fruits & vegetables and fast-moving consumer goods once a well-mapped distribution network and robust logistics infrastructure was in place. The company has a robust logistics network that facilitates the effective and efficient matching of demand and supply in a highly fragmented market, thereby eliminating waste and reducing food prices for mass market end-consumers. Twiga has two key client/value propositions: (i) guaranteed farmgate offtake for farmers on the platform with payment made within 48 hours through mobile money, significantly improving farmers’ cash flow and (ii) convenience for small-scale informal vendors on the platform through in-shop delivery within 18 hours of being ordered. Mass-market end consumers are key indirect stakeholders that benefit from the availability of high-quality products with enhanced food safety at reduced prices. The company is an existing IFC VC portfolio client (#41195). IFC invested a total of US$3mn in November 2018 alongside other venture capital investors. The investment was classified as category B and was disclosed at https://disclosures.ifc.org/#/projectDetail/ESRS/41195. IFC is also currently offering advisory services on food safety, agronomy, soil & water, and agri-finance through the Africa Food Safety Program (AS project #601759). Twiga’s environment and social management (E&S) performance in the current investment is satisfactory, and they have successfully implemented the two required  E&S Action Plan (ESAP) items, namely a Group-level Integrated EHS management system, including supply chain risk assessment and management associated with its sourcing operation and an Human Resource management system consistent with IFC Performance Standards’ requirements. IFC now looks to invest, through an unfunded Risk Sharing Facility (RSF) with KCB Bank Kenya, up to KES798mn (~US$7.5mn equivalent) for an aggregate portfolio of up to KES1.6bn (~US$15mn equivalent) to support the development of up to 100 medium-scale (>15ha) contract farmers who are part of Twiga’s supply chain. KCB Kenya is an existing IFC portfolio client (#36791). The existing investment entails a US$75mn subordinated loan completed in November 2016. The investment was categorized as FI-2 and was disclosed at: https://disclosures.ifc.org/#/projectDetail/SII/36791. KCB Kenya is currently in compliance with the E&S requirements under the existing investment.