EcoPlanet Bamboo South Africa

Project description

On January 28, 2015, MIGA issued a guarantee of $8.6 million covering an investment by EcoPlanet Bamboo Group, LLC of the United States in EcoPlanet Bamboo South Africa. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project consists of the purchase and conversion of degraded land in South Africa into functioning bamboo plantations for the production of activated carbon and bio-charcoal for sale. EcoPlanet Bamboo South Africa plans to sell 100 percent of its production to its affiliate, EcoPlanet CoreCarbon, LLC, which will sell the finished product to the local and export markets.

The project’s main development objective is to support agricultural development in the Eastern Cape region through the introduction of best practices in agricultural, environmental, and social management. The project is also expected to benefit the local economy through job creation, skills enhancement, and increased participation of local actors in the supply chain.

The project is aligned with the World Bank Group’s Country Partnership Strategy for South Africa, which supports better targeting and assistance to small and medium enterprises and foreign direct investment, including in the agribusiness sector.

MIGA’s guarantee was underwritten through MIGA’s Small Investment Program.