Forafric has bought a majority stake in Groupe Sahel, a cereal-processing company based in the Sahel region. The deal is an opportunity for the Moroccan company to establish a presence in West Africa and for the Malian company to strengthen its production capacity and diversify its product offering—specifically as it has communicated its intention to grow within the ECOWAS region (it currently also operates in Niger and Burkina Faso).
According to press reports, the new ownership structure is 78.21%, 70.35% and 37.10% in the company’s respective operations in Mali, Burkina Faso and Niger, respectively.
GS was established in 2011 by Malian entrepreneur Houd Baby. It has a share capital of USD 4.3mn (CFA 2.86bn) and specialises in processing cereals. The company entered Burkina Faso in 2017 with financing from the West African Development Bank (BOAD) and the Bank of Africa Burkina Faso (BOA BF), which totalled CFA 5.2bn.
With financing from the West African Development Bank (BOAD) and the Bank Of Africa Burkina Faso (BOA BF) for a total amount of 5.2 billion CFA francs, MDS BF started its activities during the first quarter of the year. 2017.