This summary covers an investment by the Sierra Investment Fund LLC and the ManoCap Soros Fund LLC in Dragon Transport Ltd., a transport and logistics company in Sierra Leone. The investors have applied for MIGA guarantee of up to $3.6 million 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 design and development of a national distribution, warehousing, and trading transport company in Freetown, Sierra Leone. The company will provide transport services to the Sierra Leonian market with a focus on the distribution of fish, ice, and other perishables. The company expects to have seven trucks, eighteen generators, and nine cold storage units in the initial development phase. Expansion from the capital is planned in Bo, Kenema, Kono and Kambia.
This is a Category B under MIGA’s environmental and social review procedures, as it has potentially limited adverse social or environmental impacts. Social risks are related to labor and working conditions of truck drivers and warehouse staff as well as community health, safety, and security as the trucks drive throughout Sierra Leone. Environmental risks are related to pollution prevention and abatement as trucks are used to transport the produce from one location to the other. Waste management at the warehouses could also be an issue unless it is carefully managed. A Social and Environmental Management System is being developed and implemented.
MIGA’s proposed support for this investment is aligned with the World Bank Group’s Country Partnership Strategy for Sierra Leone, particularly with regard to supporting the development of a competitive private sector. 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.