Private Sector Operations in 2001

Africa

Kenana Sugar Company in the Sudan received a private sector loan from the Fund to increase its cane-crushing capacity.

Sudan

Recipient: Kenana Sugar Company Ltd.
Type of Instrument: Loan
Sector: Agro-industry
Amount: $10 million
Approved: August 28, 2001

The Kenana Sugar Company is one of the world's biggest and most efficient sugar producers, operating from a 70,000 ha estate, of which 43,000 ha are under cultivation. This loan will be used to help finance Phase IV of a $61 million capacity expansion program. It is intended that the increased sugar production will be used to substitute for imports and/or generate foreign exchange inflows. The core of the project is the boiler unit - under Fund financing - which will furnish sufficient thermal and electrical energy to increase the cane crushing capacity to target levels. On completion of the project, the company's enhanced output will be around 450,000 tons of refined white sugar per year.

Regional

Beneficiary: West African Development Bank (BOAD)
Type of Instrument: Line of credit
Sector: Development Banks
Amount: $10 million
Approved: August 28, 2001

BOAD is the major regional development bank of the West African Economic and Monetary Union (WAEMU). The purpose of this line of credit is to enable BOAD to provide long-term financing directly to medium-sized enterprises in its countries of operation. The eight member countries of WAEMU are among the poorest in the world and have been the recipients of significant amounts of public sector resources from the Fund. BOAD was established as a specialist financial institution that acts as a catalyst for the promotion of investment activity in its member states. The Fund has a long-standing relationship with BOAD for collaboration on public sector projects. The line of credit extends this cooperation to the private sector.

Regional

Recipient: East African Development Bank (EADB)
Type of Instrument: Line of credit
Sector: Development Banks
Amount: $10 million
Approved: November 6, 2001

Serving Kenya, Tanzania and Uganda, EADB helps foster economic and social development in the East Africa region. The purpose of the Fund's credit facility is to assist with the development of EADB's term lending program to its client base of medium-sized companies. Medium- and long-term loan financing remain in relatively scarce supply in the region. The Fund's facility will allow EADB to maintain and expand its ability to lend on a longer-term basis. The on-lending will assist in the expansion of private sector development in the region, aid employment creation and boost general economic growth.