Industry Review of a Construction and Mining Group for Financing in West Africa
Description of project
The project involved a comprehensive appraisal of a major West African contractor active in the construction, mining, and logistics sectors. Commissioned by the International Finance Corporation (IFC), the study formed part of IFC’s due diligence process to evaluate a potential unfunded risk participation through a local bank.
The objective was to assess the company’s operational, financial, and strategic soundness to support the expansion of its project portfolio. The consultancy included a multidimensional review covering market positioning, competitiveness, and strategic outlook, alongside an in-depth financial analysis of profitability, liquidity, debt structure, and forecasting capacity.
The work also examined the company’s organizational structure, production and support functions, business development processes, and ESG and governance practices. The project concluded with a detailed appraisal report, presenting a SWOT analysis, identifying key operational risks, and offering strategic recommendations to enhance performance and sustainability.
The findings were incorporated into IFC’s Investment Review Meeting (IRM), serving as a critical input for its investment decision-making process.
Services provided
- Market and Sector Analysis: Evaluated the size, trends, and competitiveness of the construction, mining, and logistics sectors across West Africa.
- Strategic and Commercial Review: Assessed the company’s vision, strategy, and client portfolio (public and private), benchmarking its competitive positioning against industry peers.
- Financial Analysis: Reviewed five years of financial statements and approximately twenty sample project contracts to evaluate profitability, liquidity, solvency, cost control, and cash flow management.
- Operational and Organizational Review: Analyzed production, engineering, procurement, quality systems, and support functions such as HR, finance, and technology.
- ESG and Governance Evaluation: Examined environmental and social management systems, sustainability reporting, and corporate governance practices in line with international standards.
- Site Visits and Stakeholder Engagement: Participated in IFC-led due diligence missions at company headquarters and mining sites to validate data and collect qualitative insights.
- Reporting and Recommendations: Delivered a comprehensive appraisal report outlining findings, risks, and strategic recommendations, and supported IFC’s Investment Review Meeting (IRM) with follow-up responses.
