EBRD kicks in more cash for Moroccan cheesemaker Land’Or

26-Jan-2022 - Last updated on 26-Jan-2022 at 11:26 GMT

Land’Or has been part of the EBRD Blue Ribbon program since February 2020. Pic: EBRD

The European Bank for Reconstruction and Development (EBRD) is increasing its support for the Moroccan agribusiness sector and regional integration, with new financing for Land’Or Maroc Industries (LMI), the Moroccan subsidiary of Land’Or, a Tunisian processed cheese producer.

A loan of MAD36.9m ($3.95m) to LMI will finance the acquisition and installation of additional equipment and the construction of a storage extension at its new cheese manufacturing plant in Kenitra, Morocco.

The funds, the EBRD’s second financial package for Land’Or, will also finance the working capital needs of LMI operations.

The Bank provided a €10.9m ($12.3m) loan package to Land’Or in 2020 to partially fund the construction of a new LMI cheese plant in Kenitra that is expected to be operational early in Q2 2022.

The financing will advance the EBRD’s efforts to strengthen small and medium-sized enterprises (SMEs) in Morocco and integration with other economies in the Maghreb region.

Land’Or has been part of the EBRD Blue Ribbon program since February 2020. The program, for high-potential SMEs, is helping the company through technical assistance to adopt International Financial Reporting Standards as well as to increase its export potential and operational efficiency.

Land’Or, a Tunisian joint-stock company, was created in 1994 by Hatem Denguezli and Hichem Ayed and has been listed on the Tunis Stock Exchange since 2013. Land’Or Maroc Industries is the company's subsidiary, established in 2019, and manages the industrial projects of Land’Or in Morocco.

To date, the EBRD has invested in 80 projects in Morocco, totaling nearly €3.2bn ($3.61bn).