FMCG Manufacturer

Borrower Overview


TriLinc has provided financing to a Zambian fast-moving consumer goods (FMCG) manufacturer. Founded in 2007, the borrower is engaged in the manufacturing of high quality branded detergents, soaps, candy, and other consumer goods, which it distributes throughout Zambia and Sub-Saharan Africa. TriLinc’s financing will serve to purchase the existing plant, machinery, and equipment, which will then be leased-to-own to the company. This equipment will allow the borrower to expand its distribution and manufacturing footprint into countries outside of Zambia, including Zimbabwe, South Africa, Tanzania, Mozambique, Kenya and Rwanda. Conscious of its environmental impact, the borrower eliminates solid and air pollutants by filtering dust generated by manufacturing practices, reusing recaptured powders, and selling remaining waste as scrap. As one of the largest employers in the region, the company is projected to grow its local employee base, and generate career advancement opportunities for its current work force, as it increases its production capacity to keep up with the demands of a growing middle class in an emerging African FMCG market.

Market Overview

Zambia is classified as a lower middle-income country by the World Bank.1 Between 2010 and 2015, annual GDP growth rates averaged approximately 6.0%.1 Zambia is home to Victoria Falls, the largest curtain of falling water in the world- one and a half times wider than Niagara Falls and twice its height.2 Zambia’s main exports are derived from copper, cobalt, electricity, tobacco, flowers and cotton,3 positioning Zambia as the second largest raw and refined copper producer internationally and the second largest cobalt producer in Africa.4 Conversely, the country’s imports are primarily focused in machinery, transportation equipment, petroleum products, and foodstuffs.3

Zambia meets TriLinc’s country standards for its performance across relevant growth, stability, and access metrics.5 In 2016, it ranked 7th across the Sub-Saharan African region on the World Bank’s Ease of Doing Business index.6 As the 13th largest economy in Sub-Saharan Africa7 with a GDP of $21.2 billion, the country benefitted from the estimated $42 billion in foreign direct investment that flowed into the region in 2015.8 Sub-Saharan Africa had regional GDP growth of 3.0% in 2015,13 and is projected to strengthen to 4.4% by 2018.9

Additional Sustainability & Impact Highlights

  • The borrower is committed to supporting its employees through offering free clinical-level health care and medication, extending grants to those families suffering from bereavement, and offering an HIV/AIDS awareness program. Additionally, the borrower, offers interest-free loans and above-minimum-wage compensation for all its employees.
  • The borrower offers various capacity building activities for its employees, including a two-year internal training program that brings in expatriates to train employees on new technology.
  • As a responsible corporate citizen, the borrower donates well infrastructure to local communities and serves hundreds of students by providing continuous funding for the construction and maintenance of schools up to the high school level.

1The World Bank, World Development Indicators Database, Zambia, 2016. 2Victoria Falls Guide, 2015. 3CIA, The World Factbook, 2017: Zambia. 4The Observatory of Economic Complexity, 2017. 5There is no assurance that our investment in this company or this market will be successful. 6The World Bank, Doing Business 2017, Equal Opportunity for All, 2016. 7The World Bank, World Development Indicators Database, 2016. 8The World Bank, Data, Sub-Saharan Africa, 2016. 9The World Bank, Global Economic Prospects, June 2016.

The above information is as of the initial date of investment: November 22, 2016.

This borrower is no longer a TriLinc fund investment.

An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.

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