Notice

Category B project supported: Incatema Agricultural Developments, Cameroon

Published 30 April 2025

1. Project description

UK Export Finance has agreed to provide support to the Ministry of Economy, Planning and Regional Development of Cameroon in respect of an agricultural development project which seeks to improve approximately 15,000 hectares of agricultural land at existing ranches in the Adamawa region of Cameroon.

A key aim of the Project is to develop grassland following a silvopastoralism model, which will build resilience to climate change, create employment and grow regional and national GDP through improved productivity.

The Project includes:

• Land management to create extensive pasture and hay production to support cattle;

• Family scale milk and poultry production facilities;

• Agricultural machinery and shared maintenance facilities;

• Rehabilitation of rural roads to facilitate access;

• Watering points; and

• Housing and social infrastructure for communities working on the farms.

2. Project sector

The Project is in the Agriculture, Forestry and Fisheries sector.

3. Project sponsors

The Project is being developed by Ministry of the Economy, Planning and Regional Development of Cameroon (“MINEPAT”)

4. UK exporters

Incatuk Limited along with approximately 40 UK suppliers providing goods and services including building materials, livestock equipment and agricultural machinery, other agroindustry equipment, and freight services.

5. Export Credit Agent Bank

Standard Chartered Bank

6. Amount of UK Export Finance support

The principal value of the support is approximately EUR 76 million.

7. OECD Common Approaches and Equator Principles

UK Export Finance categorised the Project as Category B i.e. having environmental, social and human rights (ESHR) impacts that are few in number, site-specific, few (if any) of which are irreversible, and for which mitigation measures are more readily available in accordance with the definition in the 2012 (Revised 2024) OECD Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”) and the Equator Principles (2020).

8. Environmental, Social and Human Rights standards

Project related ESHR documentation was reviewed for their alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were:

• PS1: Assessment and Management of Environmental and Social Risks and Impacts;

• PS2: Labour and Working Conditions;

• PS3: Resource Efficiency and Pollution Prevention;

• PS4: Community Health, Safety and Security;

• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and

• PS8: Cultural Heritage.

The applicable World Bank Group EHS Guidelines were:

• General EHS Guidelines (2007);

• EHS Guidelines for Mammalian Livestock Production (2007);

• EHS Guidelines for Poultry Production (2007); and

• IFC Good Practice Note: Improving Animal Welfare in Livestock Operations (2014).

9. Nature of ESHR impacts

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project

• Worker Welfare;

• Occupational Health and Safety ;

• Human Rights risks in Supply Chain.

• Management of third-party Contractors;

• Waste and Hazardous Waste Management;

• Water Resources;

• Physical Climate Risks;

• Hazardous Materials Management;

• Community Health and Safety / Security;

• Biodiversity;

• Management of Living Natural Resources; and

• Cultural Heritage.

10. Assessment of ESHR impacts

A review was undertaken in line with the requirements of the OECD Common Approaches and Equator Principles to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

The review included:

• Desk-based review of Project-related documentation: Environmental and Social Impact Assessment, Environmental and Social Management Plans, and Stakeholder Engagement Plan; and

• Follow-up meetings and interviews with relevant Project representatives.

The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

Taking account of the review, the Project was deemed to have potential to cause a number of adverse environmental and social impacts both during construction and operation. However, a proposed suite of controls as part of the Project’s environmental and social management systems should facilitate the management of these impacts.

11. Climate change considerations

UKEF considered the potential direct and indirect greenhouse gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of its ESHR review.

The Project is not considered to be a carbon intensive undertaking (such as fossil fuels or petrochemical projects) and, therefore, was not expected to generate “high” GHG emissions exceeding the relevant thresholds for quantification and reporting set by international standards.

The review revealed that the Project design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Various actions have been agreed between the Project developer, operator, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle. UKEF has therefore decided to provide its support in respect of the supply of goods and services by UK exporters to the Project.

A condition of support is that Project will be subject to monitoring and reporting in order to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.