Vegpro Ghana

completed

IFC is considering a loan of up to $7 million to VGL to enable them to establish a greenfield horticulture project in Ghana. The Vegpro Group, which includes VGL, is a leading exporter of vegetables and flowers to the UK and Europe from its Kenya operations, to market leading clients, such as Marks & Spencer, Tesco and Sainsbury’s. Vegpro’s flower growing operations in Kongoni are subject to an existing IFC investment. E&S management at that operation has been reviewed a number of times since the investment was committed and has always been judged to be meeting IFC’s requirements with regards to the Performance Standards and at-commitment E&S requirements. VGL has entered into a 50-year lease on 1070 hectares (ha) of land to grow baby corn, chilies and butternut squash, under centre pivot irrigation, primarily for export. Maize will be used as a rotation crop and to supply the local market, ensuring food security. The investment plan also includes growing rice and soya beans if proposed trials prove successful. VGL will also source vegetables from a large number of local smallholders. The Vegpro Group selected Ghana for expansion of its operations due to: (i) a good investment incentive and business climate; (ii) good land and water availability; (iii) excellent logistics and proximity to Europe, and; (iv) favorable climatic conditions.