Egyptian Food Company 'Faragalla'



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

14 Oct 2015



PSD disclosed:

28 Aug 2015

Translated version of this PSD: Arabic

Project Description

The EBRD is providing a long-term loan of up to EGP 200 million to the Egyptian Food Company (“Faragello” or the “Company”) part of the Faragalla Group. The loan will be used to (i) partially refinance existing short-term debt (ii) finance permanent working capital requirements; the (“Project”).

Transition Impact

The transition impact of the project is expected to stem from two main categories: (i) market expansion through backward linkages to suppliers including supplier development and training and forward linkages to third party logistics providers and (ii) setting standards for corporate governance through implementation of improvements in the Company’s management and Board structures.

The Client

Faragallo is one of the leading Egyptian producers of juice, dairy and processed vegetables, amongst others. Faragallo is the largest company within the Faragalla Group, one of Egypt’s leading diversified food companies with activities in the juice, dairy, vegetables, meat processing, baked goods and other foodstuffs market segments currently employing around 6,000 people. The Group is owned by Mr. Mohamed Farag Amerand his family.

EBRD Finance

Up to EGP 200 million.

Environmental and social categorisation, impact, and mitigation

Categorised B (2014). Environmental and Social Due Diligence (ESDD) has shown that the Project and existing operations (juice, dairy, vegetable and meat processing and distribution) are associated with some environmental and social impacts although these are generally well managed by the Company. Some improvements are, however, required and as such an Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to fully align existing operations with the EBRD performance requirements PRs.

The ESDD showed that the Company has in place various certified management systems including ISO 9001 (quality), ISO 14001 (environment), OHSAS 18001 (H&S) and ISO 22000 (food safety) to appropriately manage potential E&S issues associated with its activities. HR provisions are generally in line with PR 2 requirements and the Company has in place various procedures to manage potential E&S risks in its supply chain. The Company demonstrates good performance with the management of emissions and effluents, as well as the storage and handling of small amounts of hazardous materials, associated with its activities. Internal H&S provisions are adequate although some improvements are required to better manage potential road safety risks associated with company and third party vehicle fleets. Food safety is managed through the ISO 22000 certified management system. To fully align the Faragalla Group of Factories (FGF) with the EBRD PRs an Environmental and Social Action Plan has been developed and has been agreed with the Company. Key ESAP actions include expanding the existing EHS management team; training of company security personnel in line with PR 2 requirements, development and implementation of a waste minimisation programme; development of a code of conduct for safe driving for company drivers, including training; and the implementation of an external grievance mechanism.

The Company will be required to provide reports on environmental and social issues and the implementation of the ESAP annually to the Bank.

Technical Cooperation

The Project will have a Technical Cooperation component focusing on (i) strengthening corporate governance, ii) improving sales, marketing and commercial functions, and iii) identify and implement cost reduction initiatives.

Company Contact

Nassr Abdel Salam – Managing Director, FARAGALLA Group
Phone: +2 03 459 2040

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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