MIGA Supports Production of High-Quality Dairy Products in Afghanistan
Investment will reduce reliance on imported products
Washington, December 10, 2013 - The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, announced today that it is providing investment guarantees to support the production of high-quality dairy products in Afghanistan.
Kabul Dairy Processing Plant will be located in Kabul Province and will process, produce, and distribute high-quality dairy products such as milk and yogurt for the domestic market. MIGA’s guarantees of €1.35 million to Van den Heuvel Dairy Food Equipment B.V. of the Netherlands and two individual investors are covering the risks of transfer restriction, expropriation, and war and civil disturbance for a period of up to 10 years.
“Dairy products are a major source of protein in Afghanistan,” says Mr. Nico Maat, Managerof Van den Heuvel Dairy. “However, the dairy sector was largely destroyed during the Afghan civil war and imported dairy products now have the majority of the market share. We believe it is the right time to have locally produced dairy products in Afghanistan, which could compete with imported products both in terms of quality and quantity.”
Supporting the livestock and local dairy industries has been a priority for the government of Afghanistan and international development organizations. This project is also being supported by the Agency for International Business and Cooperation of the Netherlands under the Ministry of Foreign Affairs.
“Our support for this project demonstrates our commitment to supporting Afghanistan as it works to rebuild its economy,” says Edith P. Quintrell, MIGA’s Director of Operations. “Projects like this bring immediate benefits and have an important demonstration effect for other companies considering investments into conflict-affected environments.”
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi, MIGA