MIGA Backs Agribusiness Investment in Zambia

MIGA Backs Agribusiness Investment in Zambia
Guarantee for acquisition of grain mill continues
Agency’s long-standing support to the sector

Washington, January 12, 2014 – The Multilateral Investment Guarantee Agency (MIGA)—the political risk insurance and credit enhancement arm of the World Bank Group—announced today its support for an investment in a maize and wheat-milling operation in Zambia. The investment will support agricultural value-chain development through improvements to the mill’s operation.

MIGA is providing a guarantee of $23.8 million covering a shareholder loan by Agrivision Africa (previously known as Chayton Africa) of Mauritius to Chobe Agrivision of Zambia, a wholly owned subsidiary of Agrivision Africa. MIGA is covering the investments against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

Agrivision Africa, pioneered by Zeder Investments and Norfund, focuses on building vertically integrated agribusinesses in sub-Saharan Africa. Having already established a strong primary production foundation, the company is now expanding along the value chain. Chobe Agrivision has therefore acquired Mpongwe Milling, an existing maize and wheat mill in Kitwe, in the Copperbelt Province to complement the group.

Mpwonge Milling’s maize and wheat mills produce flour, bran, breakfast meal, and roller meal. The company markets their products directly to the public, as well as retailers and bakeries. Chobe Agrivision intends to improve the performance of the mills, which are currently operating below capacity.

“Our investment in Mpongwe Milling has increased output and supplemented food supply in the region,” says Stuart Kearns, Zambian Country Manager. “This investment builds on our long-standing commitment to transforming Zambia’s agribusiness industry and helping the sector and region achieve its significant potential.”

MIGA’s coverage for the acquisition of the mill represents a continuation of the Agency’s support for agribusiness investments in Zambia as well as the strengthening of strategic relationships with credible operating partners. MIGA is currently supporting five projects in the agribusiness sector including grain cultivation and milling, livestock, and fisheries.

“We’re pleased to continue our support to the development of Zambia’s agribusiness sector and Agrivision Africa’s growth,” said Keiko Honda, MIGA’s Executive Vice President and CEO. “The government of Zambia and the World Bank Group have identified agriculture as a priority to help the country reduce poverty and vulnerability of the poor.”

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MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433

MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org

Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org

Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org