Sustainable and Organic Palm Oil Production and Processing

Sustainable and Organic Palm Oil Production and Processing

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Sustainable and Organic Palm Oil Production and Processing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Build and operate sustainable and organic palm oil production and processing facilities that sell on local and international markets, in line with the Roundtable on Sustainable Palm Oil (RSPO) Principles utilising either in-grower (where palm is sourced from own farms) or out-grower (where the supply farms are not owned by the processor, but there are binding contracts in place with supplier farmers) models.

Expected Impact

Reduction of negative environmental impacts, improved farmer incomes, and increased value chain employment opportunities as well as contributions to food security.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Life on Land (SDG 15)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Climate Action (SDG 13)
Sector Sources
  • 1) International Monatery Fund. 2022. Sierra Leone: 2022 Article IV Consultation and Fifth Review. Accessed from: https://www.imf.org/en/Publications/CR/Issues/2022/07/29/Sierra-Leone-2022-Article-IV-Consultation-and-Fifth-Review-under-the-Extended-Credit-521569 2) International Trade Administration. 2021. Sierra Leone - Country Commercial Guide. Accessed from: https://www.trade.gov/country-commercial-guides/sierra-leone-market-overview 3) Government of Sierra Leone. 2019. Sierra Leone’s Medium-Term National Development Plan 2019 - 2023. Accessed from: https://www.slurc.org/uploads/1/0/9/7/109761391/sierra_leone_national_development_plan.pdf 4) Government of Sierra Leone. 2021. Updated Nationally Determined Contribution (NDC). Accessed from: https://unfccc.int/sites/default/files/NDC/2022-06/210804%202125%20SL%20NDC%20%281%29.pdf 5) Government of Sierra Leone. 2022. Customary Land Rights Act. Accessed from https://faolex.fao.org/docs/pdf/sie212374.pdf 6) Food and Agriculture Organisation. 2018. Country Gender Assessment Series: National gender profile of agriculture and rural livelihoods, Sierra Leone. Accessed from: https://www.fao.org/documents/card/en/c/I9554EN/ 7) National Agricultural Transformation. Strategy 2019-2023. Please note, Ministry website has been offline. Accessed information indirectly via: https://www.investinginsierraleone.com/agriculture-and-fisheries/#:~:text=In%20light%20of%20rises%20in,of%20Sierra%20Leone's%20economic%20development. 8) Food and Agriculture Organisation. Website. https://www.fao.org/sierra-leone/programmes-and-projects/ru/
IOA Sources
  • 9) Roundtable on Sustainable Palm Oil Website. Our Standards. Accessed from: https://rspo.org/as-an-organisation/our-standards/ 10) Goldtree LinkedIn Profile. Accessed from: https://www.linkedin.com/company/goldtreesl/about/ 11) Planting Naturals Website. Accessed from: https://www.plantingnaturals.com/sustainability-responsible-palm-oil/ 12) AECF website. Accessed from: https://www.aecfafrica.org/stories/solar-panda/ 13) VCA4D. 2019. Palm Oil Value Chain Analysis in Sierra Leone. Accessed from: https://agritrop.cirad.fr/589437/ 14) ITC. 2022. Palm oil production and markets in Sierra Leone. Accessed from: https://intracen.org/media/file/10488 15) OEC Website. Accessed from: https://oec.world/en/profile/bilateral-product/palm-oil/reporter/sle 16) ACET. The Oil Palm Value Capture Opportunity in Africa. Accessed from: https://acetforafrica.org/research-and-analysis/reports-studies/reports/the-oil-palm-value-capture-opportunity-in-africa/ 17) Svatoňová, T. & Herak, David & Kabutey, Abraham. 2015. Financial Profitability and Sensitivity Analysis of Palm Oil Plantation in Indonesia. Accessed from: https://www.researchgate.net/publication/282391119_Financial_Profitability_and_Sensitivity_Analysis_of_Palm_Oil_Plantation_in_Indonesia#:~:text=A%208%2C000%20ha%20plantation%20over,basis%20of%20the%20assumptions%20made. 18) Mongabay. 2022. In West and Central Africa, palm oil investors buckle under community pressure. Accessed from: https://news.mongabay.com/2022/03/in-west-and-central-africa-palm-oil-investors-buckle-under-community-pressure/ 19) China Dialogue. 2022. Sierra Leone’s conflict palm oil certified as sustainable. Accessed from: https://chinadialogue.net/en/food/sierra-leones-conflict-palm-oil-certified-as-sustainable/ 20) World Economic Forum. 2022. How African palm oil can boost livelihoods and protect forests. Accessed from: https://www.weforum.org/agenda/2022/11/how-african-palm-oil-can-boost-livelihoods-and-protects-forests/ 21) RSPO. 2022. Impact Stories: From Challenge to Certification. Accessed from: https://rspo.org/impact-stories/from-challenge-to-certification/ 22) The Sustainable Palm Oil Choice Website. Accessed from: https://www.sustainablepalmoilchoice.eu/participant/palma-organica/ 23) World Population Review. 2023. Accessed from: https://worldpopulationreview.com/country-rankings/median-income-by-country 24) Republic of Sierra Leone. 2010. National Sustainable Agriculture Development Plan 2010-2030. Accessed from: https://www.gafspfund.org/sites/default/files/inline-files/SL_NSADP.pdf" 25) International Fund for Agriculture Development. 2020. Republic of Sierra Leone Country Strategic Opportunities Programme 2020-2025. Accessed from: https://webapps.ifad.org/members/eb/129/docs/EB-2020-129-R-14-Rev-1.pdf 26) UNDP Stakeholder Consultations, April 25, 2023, May 11, 2023, May 15, 2023, and June 1, 2023 27) World Bank website. Accessed from: https://data.worldbank.org/indicator/SN.ITK.DEFC.ZS?locations=SL 28) SLIEPA Website. Available incentives in Sierra Leone. Accessed from: https://www.sliepa.gov.sl/invest-in-sierra-leone/all-incentives 29) Government of Sierra Leone. THE ENVIRONMENT PROTECTION AGENCY ACT, 2022. Accessed from: https://www.parliament.gov.sl/uploads/acts/THE%20ENVIRONMENT%20PROTECTION%20AGENCY%20ACT,%202022.pdf 30) KPMG Website. Accessed from: https://kpmg.com/ke/en/home/services/advisory/international-development-advisory-services/our-sectors-idas/agribusiness-sector/sierra-leone-agribusiness-development-fund.html 31) Emmanuel S. Gbakie, Brima Kamara and Patrick A.F. Dumbuya. 2017. New Rural Finance Institutions in Sierra Leone. Accessed from: https://cgspace.cgiar.org/bitstream/handle/10568/97182/EC3_Gbakie.pdf?sequence=1&isAllowed=y