PHC is pleased to confirm its commitment to the principles of environmental and social governance following the purchase by Maku Holdings of all of the debt of Plantations et Huileries du Congo (PHC) previously owned by four development banks: CDC Group of the UK, DEG of Germany, BIO of Belgium and FMO of the Netherlands (together, the “Development Banks”). With this transaction, which entered into force on February 18, 2022, the Development Banks are no longer donors to PHC. Maku Holdings is an affiliate of Kuramo Capital Management.
CDC Group initially invested in PHC in 2013, followed by the other three development banks in 2017 to help stabilize PHC's operations after several years of conflict in the Democratic Republic of Congo. As a condition of this investment, PHC has agreed to a contractual agreement to implement an environmental and social action plan (Environmental and Social Action Plan ESAP) that defines PHC's short- and long-term environmental and social activities, and links them to a set of deliverables. The ESAP was most recently updated in 2020, and PHC has made significant progress in its implementation.
Although the buyout of debt by Maku Holdings signals the end of PHC's contractual agreement with the Development Banks vis-à-vis ESAP, PHC remains fully committed to its environmental and social obligations as well as to the ESPA. A central objective of the Development Banks in the transition with Maku Holdings was to ensure that PHC was a sustainable and successful business under Congolese leadership.
PHC wishes to assure the local communities with which it is engaged that it will continue to implement the ESAP and will pursue all mediation processes begun with the local communities prior to the transaction. PHC is also able to expand its community development program (Community Development Program in English) in 2022, adding to the more than $10 million PHC has already invested in critical housing, transportation, health and education infrastructure.
PHC has benefited greatly from the expertise and advice of Development Banks over the past few years. Following the conclusion of the company's official collaboration with this group, PHC expresses its sincere gratitude for the support, confidence, and investment of the Development Banks.