IMPACT REPORTING


Impactful Investments: Meat Processor


South Africa is the second largest economy in Sub-Saharan Africa1 and has benefited from an estimated $32 billion of foreign direct investment in 2013.2 However, improvements in South Africa’s post-apartheid living standards and income inequality have not occurred as quickly as anticipated, as evidenced by the country’s nationwide unemployment rate of 25%.3 These social and economic discrepancies are particularly apparent in the country’s rural areas, where unemployment rates range from 15.9% to 35%.4

In July 2014, TriLinc Global Impact Fund (“TriLinc”) extended a $1,000,000 trade finance facility to a vertically-integrated meat processing company operating in the rural provinces of Northern Cape and North West. Established in 1986, the borrower supplies meat to large, well-established wholesalers, retailers, and restaurants throughout the country. The borrower’s meat processing facility is one of only three in South Africa that have been certifi ed by the South African Bureau of Standards as Hazard Analysis Critical Control Point (HACCP) compliant.

TriLinc’s financing is expected to support the borrower’s continued growth through the expansion of its distribution network and the addition of more retail outlets in the country’s underserved low- to middle-income consumer market. As a part of this growth, the borrower anticipates that it will expand its employee base. The borrower is one of the largest employers in the region and co-sponsors a school offering accredited on-site primary and secondary education and agricultural training to local children. Additionally, the borrower provides on-site housing for its employees, day care services for employees’ children, funds a soup kitchen, and makes additional food donations to local charitable organizations.

 



Past performance is no guarantee of future results. This borrower and the information presented represents an actual transaction in TriLinc Global Impact Fund.
1) World Bank, World Development Indicators Database, 2014
2) The World Bank, Global Economic Prospects, 2014
3) World Bank, World Development Indicators Database, 2014
4) Statistics South Africa. Quarterly Labour Force Survey, Q2 2014
5) There is no assurance that our investment in the borrower or this market will be successful or will have the desired impact.
6) The current loan commitment amount represents the current amount that is available to the borrower under the agreement. This amount may change over time.
7) Note, this is not a measure of TriLinc’s investment performance nor is it necessarily indicative of distributions that TriLinc may provide to investors.
8) The collateral coverage ratio is the amount of collateral the borrower must maintain in relation to the total amount outstanding on the facility.

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SC Distributors, LLC (member FINRA/SIPC) is the affiliated dealer manager for the TriLinc Global Impact Fund offering.