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Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.
 
Project Name Genesis Farms – Sierra Leone Limited
Guarantee Holder Drie Wilgen Development B.V.
Investor Country Netherlands
Host Country Sierra Leone
Sector Agribusiness
Gross Exposure ($million) 2.8
Fiscal Year 2010
Status Proposed
Project Number 8084
Environmental Category B
Date SPG Disclosed August 12, 2009
Project Board Date September 10, 2009
 

This summary covers a €1.9 million shareholder loan from Drie Wilgen Development B.V (DWD) in the Netherlands to Genesis Farms - Sierra Leone Limited (GFSL) in Sierra Leone. DWD has applied for a MIGA guarantee of up to $2.8 million for a period of up to 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance.  

The project entails the establishment of three mechanized 250-hectare farms in the Port Loko District in the northern province of Sierra Leone. The farms will produce rice, sorghum, and sesame and be located within different chiefdoms in order to maximize the demonstration benefits to the farming communities, compare results from various production areas, and create healthy competition between the farms. The project will target customers in the local market, primarily wholesale buyers for food and seeds and the food industry. The project will also set up an agricultural center for extension services and supplies of agricultural inputs as well as for transfer of knowledge and expertise. Activities will be embedded in the local communities and comply with international standards for environmental and social sustainability.

Environmental Categorization

The project is a Category B under MIGA’s environmental review procedures.

Development Impact

It is estimated that 82 percent of Sierra Leone’s population lives below the poverty line of $1/day. A fundamental aspect of poverty in the country is food insecurity caused by, among other reasons, low domestic production, poor distribution and availability, and low purchasing power of households. Due to poor infrastructure and policy and institutional failures, food-producing areas also have poor linkages with markets resulting in low returns for food producers and high post-harvest losses. The project aims to develop permanent agriculture making use of modern and sustainable agricultural practices and low tillage. It will help boost agriculture-led growth in a country that has relied primarily on natural resources for its revenue

The proposed project is in line with the World Bank’s country assistance strategy for Sierra Leone, one of the key objectives of which is to promote sustainable growth, food security, and jobs creation. MIGA’s participation in the project is also aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The proposed project would be underwritten through MIGA’s Small Investment Program.

 

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