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French development finance institution Proparco has granted a €5 million loan to Société Guinéenne de Produits Alimentaires (SOGUIPAL), a company in Guinea’s food processing industry. The loan will enable SOGUIPAL to significantly increase its yoghurt production capacity.
Proparco’s financing will support a €7.2 million investment programme to expand SOGUIPAL’s yoghurt production facility in Coyah, on the outskirts of Conakry, and to finance the working capital requirements associated with the increase in production.
The new production line will add six tonnes of yoghurt per day, bringing the plant’s total production capacity to 15 tonnes per day. The project will also draw on French industrial expertise, with Tecnal supplying production equipment and Erca providing part of the packaging equipment.
Founded in 2011 by Guinean entrepreneur Ibrahima Diallo, SOGUIPAL is the agro-industrial subsidiary of the Comptoir Commercial Général group. The company currently produces and packages yoghurt, powdered milk, tomato paste, mayonnaise and margarine. Its products are marketed through a distribution network spanning Guinea and several countries in the sub-region, and its yoghurt is sold under the Best Yaourt brand.
Guinea’s dairy sector remains heavily dependent on imports. The expansion comes against a backdrop of strong economic growth in Guinea, driven notably by the Simandou iron ore project.
“This project marks another important milestone in SOGUIPAL’s development. Increasing our production capacity will enable us to meet growing demand for high-quality, locally produced products. We are delighted to have Proparco’s support as we embark on this new phase of growth. Beyond expanding our industrial facilities, this investment will strengthen our contribution to employment, local processing and the development of Guinea’s food processing industry,” said Ibrahima Diallo, chairman and chief executive officer of SOGUIPAL.
“Through this financing, Proparco is supporting a Guinean entrepreneur who has gradually built a company into a leading industrial player in its market. Developing local food processing capacity is essential to strengthening the resilience of West African economies and reducing their dependence on imports of finished products. We are particularly pleased to support SOGUIPAL as it scales up its operations, with long-term financing tailored to its investment cycle,” said Sadio Dicko, Proparco’s regional director for West Africa.
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