EBRD loan to finance new cheese plant in Morocco, expansion in Tunisia

02 Septembre 2020

Tunis, Tunisia, September 2 (Infosplusgabon) - The European Bank for Reconstruction and Development (EBRD) is strengthening the agribusiness sector in Morocco and Tunisia with a total loan equivalent to €10.9 million to Land’Or, a leading Tunisian processed cheese maker.

In it announcement of the loan on Wednesday, the EBRD said the operation is supported by the European Union (EU).

In Tunisia, the EBRD will provide a loan of 10 million dinar (€3.1million equivalent) to procure new machinery and increase the production capacity. Land’Or will also optimise the processes in its Tunisian plant by improving its industrial standards, investing in productivity, quality and safety.

Meanwhile, Land’Or’s subsidiary in Morocco, Land’Or Maroc Industries (LMI), will receive a loan of 82.2 million dirham (€7.8 million equivalent) to finance the acquisition and installation of equipment at its new cheese manufacturing plant, to be built in Kenitra, north of Rabat.

This facility is expected to be operational by the end of 2021 and will have a capacity of 2,700 tonnes of processed triangle cheese per year. It is also designed to manufacture new products and new packaging with the objective of increasing export potential.

LMI will also benefit from an EU grant through the Bank’s Value Chain and Competitiveness Programme, which aims to improve value chains and make businesses more competitive across the southern and eastern Mediterranean region.

Under the programme, the EBRD works with small and medium-sized businesses (SMEs) operating in various value chains in Egypt, Jordan, Morocco and Tunisia to support their competitiveness and growth by strengthening product quality and adding value, improving standards and creating an enabling environment for exports.

Land’Or has been part of the EBRD Blue Ribbon programme since February 2020. The programme, dedicated to high-potential small and medium-sized enterprises, is helping the company through technical assistance to adopt International Financial Reporting as well as increasing its export potential and operational efficiency.

Land’Or, a Tunisian joint-stock company, is one of the leading local processed cheese producers. It was created in 1994 by Dr Hatem Denguezli and Dr Hichem Ayed and was listed on the Tunis Stock Exchange in 2013. Land’Or Maroc Industries is the company's recently established subsidiary in Morocco.

The EBRD places a strong emphasis on providing finance for private sector firms in Morocco and in Tunisia. Both countries became economies where the EBRD invests in 2012. To date, the EBRD has invested close to €2.5 billion in Morocco through 66 projects. In Tunisia, the Bank has invested €950 million across 47 projects.

FIN/ INFOSPLUSGABON/TFG/GABON2020

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