Region and country of operations: Africa, Senegal
Jurisdiction of registration: Senegal
Business sector: Other manufacturing
Date of agreement (month/year): 7/2018
Finnfund’s financing: EUR 4,000,000
Share of Finnfund’s financing: 38%
Size of project/financing: EUR 10,500,000
Environmental and social category: B
Polykrome is one of Senegal’s largest industrial printing company which has begun to refocus its business from printing & graphics to packaging solutions such as cardboard and plastic film labels, which are mainly used by local consumer good manufacturers.
Finnfund’s loan is a part of financing package syndicated by IFC, a member of the World Bank Group, and will be used to expand company’s production and to relocate its two existing facilities to a new industrial site. The aim is to support local production of packaging solutions and hence foster local production and distribution of consumer goods.
Main development impact
Polykrome is a SME company in a LDC country with a limited access to funding from local financial institutions. With the funding provided by Finnfund and IFC, the company is committed to develop and expand its operations in a sustainable manner, e.g. by introducing best practices in building the new facilities.
The investment will support the development of the packaging sector in Senegal, and decrease the pressure to import packaging from abroad. By supporting a local company to provide packaging solutions to local consumer goods producers, the investment may also facilitate the expansion of local goods market as well as reduce food waste, which is a major problem in developing countries and in hot and humid environments, such as Senegal. As the company produces packaging for Fast Moving Consumer Goods (FMCG), typically used by the poorest segments of the society, the project may also widen the variety and quality of products provided for the poorest.