AFREXIMBANK EXCLUSION LIST UNDER ITS ESM POLICIES AND GUIDELINES

Afreximbank does not finance any business or activity involving:

  1. Production or trade in any product deemed illegal under the member states laws or regulations or international conventions and agreements.
  2. Production of or trade in weapons and munitions1
  3. Trade in Wild life or wild life products regulated under CITES2
  4. Production or use of or trade in hazardous materials such as radioactive materials3
  5. Production or use of or trade, unbounded asbestos fibres, products containing PCB’s4 and chemicals subject to international phase-outs or bans.
  6. Production of or trade in pharmaceuticals, pesticides, herbicides subject to international phase-outs or bans.
  7. Production of or trade in ozone depleting substances subject to international phase out5
  8. Drift net fishing in the marine environment using nets in excess of 2.5km length.
  9. Production or activities involving forced labour6 or child labour7
  10. Psychotropic drugs or narcotics.
  11. Pornographic and obscene materials.

 

PROJECT SCREENING CRITERIA FOR ESM PURPOSES
When a project or transaction is proposed for financing, Afreximbank as part of its internal social and environmental review and due diligence, will categorise such project based on the magnitude of its potential impacts and risks in accordance with the environmental and social screening criteria of the International Finance Corporation (IFC), summarized below.


ENVIRONMENTAL RISK CATEGORISATION CRITERIA

  1. project sector and activities (which cause e. g. consumption of resources, use of hazardous materials, effluents, emissions, wastes, etc.)
  2. specific location (site and potential impacts of operations on sensitive areas incl. impacts on biodiversity etc.)
  3. purpose of financing (e.g. site expansion, modernization, etc.)
  4. size of the project (large, medium or small scale)
  5. Environmental impact of the supply chain (immediate and important suppliers).

 

SOCIAL RISK CATEGORIZATION CRITERIA

  1. number of employees (present, newly created jobs, dismissals);
  2. percentage of risk groups as a proportion of total workforce (e.g. temporary workers, migrants, minors, women, disabled persons);
  3. sub-contractors and social supply-chain management (e.g. number of workers hired through sub-contractors, outsourcing of core business activities to sub-contractors);
  4. affected communities (e.g. physical or economic displacement, impacts on social and economic infrastructure, community health and safety, vulnerable groups);
  5. sector (e.g. low wage industries, agriculture, mining, infrastructure projects);
  6. occupational health & safety risks related to the sector;
  7. project type (e.g. greenfield, brownfield, projects incorporating privatisations);
  8. projects with extended construction activities (e.g. camp needed).

 

EXAMPLES OF CATEGORY A PROJECTS:

  1. On- and off-shore Oil & Gas developments and crude oil refineries (excluding undertakings manufacturing only lubricants from crude oil);
  2. Installations for storage of petroleum, petrochemical, or chemical products with a capacity of 200,000 tonnes or more;
  3. Extraction, agglomeration and processing of peat, coal and lignite, metal ores, chemical and fertilizer minerals;
  4. Quarries and open cast mining operations;
  5. Thermal power stations and other combustion installations with a heat output of 300 megawatts;
  6. Initial smelting of cast-iron and steel; installations for the production of non-ferrous crude metals from ore;
  7. Integrated chemical installations, i.e. those installations for the manufacture on an industrial scale of substances using chemical conversion processes: basic organic chemicals; basic inorganic chemicals; phosphorous-, nitrogen- or potassium-based fertilizers; basic plant health products and of biocides; basic pharmaceutical products using a chemical or biological process; explosives;
  8. On- and off-shore Oil & Gas developments and crude oil refineries (excluding undertakings manufacturing only lubricants from crude oil);
  9. Installations for storage of petroleum, petrochemical, or chemical products with a capacity of 200,000 tonnes or more;
  10. Quarries and open cast mining operations;
  11. Thermal power stations and other combustion installations with a heat output of 300 megawatts;
  12. Initial smelting of cast-iron and steel; installations for the production of nonferrous crude metals from ore;
  13. Large-scale land reclamation;
  14. Activities involving the release of genetically modified organisms (GMOs);
  15. Large-scale primary agriculture;
  16. Plants for the tanning of hides and skins (>12 t per day);
  17. Installations for the intensive rearing of poultry or pigs;
  18. Projects which are planned to be carried out in sensitive locations;
  19. Projects with significant impacts on economic and social basis of local communities;
  20. Projects affecting indigenous or tribal populations;
  21. Projects which may adversely affect areas cultural significance;
  22. Projects with physical or economic resettlement components;
  23. Projects which involve large retrenchment (more than 20 per cent of the present workforce or >50 workers.

 

CATEGORY B-EXAMPLES

  1. Agribusiness (small scale);
  2. city hotels, small scale tourism;
  3. general manufacturing;
  4. chemical industries, without any bulk storage of explosive or hazardous substances;
  5. processing and preservation of fruit and vegetable, fish, meat;
  6. vegetable/animal oil production and processing;
  7. manufacturing of wines and other fermented beverages;
  8. dairy products manufacture;
  9. manufacture of leather products (except tanning and dyeing);
  10. repair and maintenance shops;
  11. spinning, weaving and finishing of natural and synthetic fibre;
  12. manufacture of wood products, sawmilling;
  13. privatisations with potential restrictions on the access to basic supply (e.g. water);
  14. significant outsourcing of core business activities to sub-contractors;
  15. more than 25% of workforce belong to defined groups (e.g. temporary workers, migrants, disabled persons).

 

CATEGORY C-EXAMPLES

  1. Establishment of business services industries (business advisors, accountancy auditors, etc.);
  2. establishment of restaurants and other food premises;
  3. education and training;
  4. broadcasting (TV, radio, satellite);
  5. health and family planning;
  6. purchase of computer equipment;
  7. establishment and equipping of art, design, telecommunications studios;
  8. spinning, weaving and finishing of natural and synthetic fibres;
  9. tailoring and dress-making shops;
  10. advisory assignments;
  11. life insurance companies.

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