Project Description
SODEGRAIN intends to expand its scope of business which consists of treating paddy rice, by establishing a turnkey flour mill plant that will process 50,000 tons of corn and 35,000 tons of wheat per year.

The planned production capacity of the equipment was designed for processing 95,000 tons of grain per annum.

Project Sponsors

The project Sponsor is SODEGRAIN SA, a privately held limited liability company, incorporated in Burkina Faso in 2000 following the privatization of SONACOR. The company which is active in processing and producing high quality rice with a daily capacity of 4 tons, considered as the biggest plant of its kind in the West African Economic and Monetary Union (WAEMU). The paid-in capital initially set at FCFA 250 million was subsequently increased to FCFA 500 million (approx USD 875,000) as of March 18, 2002.

Project Location

The plant is located at Matourkou, an agricultural zone some 15 km from Bobo Dioulasso (350 km from Ouagadougou, the capital) on the road to Banfora.

Project Cost

The project cost is estimated at USD 7.4 million, out of which the sponsors' contribution would be 53.14%.

ICD's Role and Developmental Impact

. The proposed transaction will be the first direct financing extended by ICD in Burkina Faso and in Sub-Saharan Africa.

. The project is a good fit with ICD's strategy and its commitment to focusing its resources towards strengthening comparative advantages within each member country.

. The project will help the country optimize utilization of its corn production surpluses.

. The project will contribute to promote trade relations between ICD member countries as the foreign equipment will be supplied from Turkey.