Antananarivo, Madagascar, July 11, 2018—IFC,
a member of the World Bank Group, is helping Bonne Viande de Madagascar—or
BoViMa—build a modern feedlot and slaughterhouse that is expected to help
an export market for zebu beef
and goat meat while creating jobs and opportunities in one of the world’s
IFC is arranging $7 million in financing for
BoViMa, including a $3.5 million IFC loan and another $3.5 million from
the Global Agriculture and Food Security Program’s Private Sector Window.
The World Bank is providing an additional $53 million to help fund an initiative
that will train veterinarians, rehabilitate laboratories, and provide better
animal care. These improvements will allow Madagascar to issue internationally
recognized animal health certificates, opening up the export market. Zebu
meat will be shipped overseas through a modern port at Tolanaro that was
partly funded by the World Bank.
IFC’s environmental and social advisory teams
are also working closely with farmers, helping them merge traditional practices
with modern, sustainable techniques to grow their herds and their incomes.
IFC is helping BoViMa develop a livestock management system that will enable
it to build a robust supply chain that includes smallholder herders and
“Our partnership with IFC is critical to
help create the market for meat exports from Madagascar,” said Danil Ismael,
CEO of BoViMa. “Through this project we are creating value for our partners,
our farmers, and our country. Madagascar’s development must be led by
the private sector.”
More than 80 percent of Madagascar’s population
earns less than $2 a day—and agriculture is the dominant employment sector.
The project is expected to help BoViMa create jobs and generate significant
economic activities in one of the poorest regions of Madagascar. By establishing
first modern slaughterhouse, it will help introduce best practices in health
and safety standards.
“In Madagascar IFC is demonstrating our
determination to create markets in fragile states, where agriculture provides
livelihoods for most people,” said IFC CEO Philippe Le Houérou. “IFC
identified what had to be done to create this market, deployed its own
resources for a couple of years to build BoViMa’s capacities and make
the project feasible, drew upon the World Bank’s knowledge, and worked
with government officials to address gaps. Our partnership with BoViMa
will help set the standard for the modernization of Madagascar’s farming
and livestock sectors.”
Underinvestment and capacity constraints
have weakened Madagascar’s livestock sector, causing the zebu cattle stock
to dwindle to six million from 23 million in the 1980s. The BoViMa project
is expected to increase Madagascar’s annual foreign exchange receipts
from meat exports.
IFC—a sister organization of the World
Bank and member of the World Bank Group—is the largest global development
institution focused on the private sector in emerging markets. We work
with more than 2,000 businesses worldwide, using our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY17, we delivered a record $19.3 billion in long-term
financing for developing countries, leveraging the power of the private
sector to help end poverty and boost shared prosperity. For more information,
The Global Agriculture and Food Security
Program (GAFSP) is a global effort that pools donor resources to fund programs
focused on increasing smallholder agricultural productivity as a way to
reduce poverty and increase food and nutrition security. GAFSP targets
countries with the highest rates of poverty and hunger. The Public Sector
Window helps governments with national agriculture and food security plans.
The Private Sector Window, managed by IFC, and supported by the governments
of Australia, Canada, Japan, the Netherlands, the United Kingdom and the
United States, provides long- and short-term loans, credit guarantees,
and equity to private sector companies and financial institutions to improve
smallholder productivity growth, improve their access to markets and finance,
and increase capacity and technical skills.