Ecuador: Proparco is supporting growth in the activity of the shrimp producer SONGA

A pioneer in the farmed shrimp sector in Ecuador, SONGA (Sociedad Nacional de Galápagos) Group covers the entire shrimp value chain, from production to marketing. Indeed, Ecuador is one of the leading white shrimp producers, making this shellfish the country’s second main export product after oil. In 2020, the company was Ecuador’s 3rd main exporter with a market share of 8.9%.

Proparco has allocated a new USD 15m loan to SONGA to finance its investment plan to increase its production and storage capacity (upgrading of the existing plant, a new cold storage room and an electricity substation) and to install a plant that will treat all the company’s wastewater.

On the economic front, as almost all SONGA’s production is exported, the company has a positive impact on Ecuador’s balance of payments. It also generates considerable tax resources in foreign currency in a country where the economy is fully dollarized. Over the next 5 years, the project is expected to contribute to generating an additional EUR 1.1m of net government revenue compared to the revenue generated today. On the social front, by supporting the growth in SONGA’s activity, the project is expected to support 5,700 jobs over the next 5 years, including 120 jobs created in the company. Finally, on the environmental front, the construction of the wastewater treatment plant will cater for the increase in SONGA’s production capacity. 

The project will contribute to SDG 8 “Decent work and economic growth” and SDG 9 “Industry, innovation and infrastructure”.