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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Motorcare Sierra Leone Limited
- Project ID
- Fiscal year
- Guarantee holder
Kjaer Group A/S
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- February 16, 2012
- Project Board date
- March 02, 2012
- Gross exposure
- $0.9 million
- Project type
- Strategic priority area
On April 23, 2012, MIGA issued a guarantee of $0.9 million to Kjaer Group A/S of Denmark for their equity investment in Motorcare Sierra Leone Limited (MSL). The coverage is for a period of 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
Kjaer Group’s investment will support the expansion of MSL, which began operations in 2001. MSL’s business lines include new vehicle sales and after-sales services in Freetown and Makeni. The expansion will focus on improving sales and after-sales services in the existing branches as well as the establishment of new sales offices and workshops in Bo and Lungi.
Kjaer Group has been operating in Sierra Leone since 2001 and has expanded its operations by reinvesting its earnings in the project. Through the provision of quality automobiles and services MSL has supported the country’s commercial development and ensured the availability of emergency vehicles supporting relief operations. When the planned expansion is completed, the project is expected to employ 100 permanent skilled local workers by end of 2015. As an authorized Ford dealer, MSL must comply with certification and training requirements set by Ford.
The project also contributes significant tax revenues to the government. In 2010, MSL was recognized as the best taxpayer of the year by the government of Sierra Leone. The award underlines the financial transparency and high social responsibility of the company. KG has been a member of UN Global Compact since 2003.
MIGA’s 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.
MIGA’s participation is also aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The project was underwritten through MIGA’s Small Investment Program.