Projects

On February 1, 2013, the MIGA-Administered West Bank and Gaza Investment Guarantee Trust Fund issued a guarantee of $2.5 million covering an equity investment by Natural Produce, Ltd. of Malta (NPL) in Natures' Produce for Agricultural Investment and Marketing Company (Thimar) in the West Bank. The investor coverage is for a period of up to 10 years against the risks of expropriation, and war and civil disturbance.

The project involves the development and expansion of Thimar, an existing local agricultural company that plants export-quality herbs and vegetables in Jericho. The company plans to expand its agricultural land to around 820 leased dunums (205 acres) to increase its herb production from 300,000 kilograms to approximately 900,000 kilograms and to produce approximately 3.3 million kilograms of vegetables annually. Thimar also plans to build herb-packaging plants as it currently outsources packaging. The planned packing houses will also serve small players in the market and would allow the company to become an aggregator of herb produce in Jericho.

Thimar's expansion will contribute to private sector development and employment generation. The National Development Plan launched by the Palestinian Authority emphasizes supporting economic growth and employment generation led by the private sector. The Interim Strategy of the World Bank for West Bank and Gaza is aligned with these priorities and encourages support the creation of a favorable business environment to attract private investment, actively support small and medium enterprises with export potential to spur economic growth, and focus on building a skilled and qualified workforce.

The agricultural sector in the West Bank is underdeveloped and its contribution to GDP growth is declining, despite being the  third largest source of employment. This investment will contribute to helping the sector achieve a higher degree of efficiency through the use of advanced irrigation systems. The project will also have an important demonstration effect as it shows the continued achievement of profitability in a challenging environment.

This project is aligned with MIGA's objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association. The project was underwritten through MIGA's Small Investment Program.