Summary of proposed guarantee
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
- Chobe Agrivision Company Ltd.
- Project ID
- Fiscal year
- Guarantee holder
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- May 27, 2014
- Projected Board date
- June 26, 2014
- Gross exposure
- $26.6 million
- Project type
- Strategic priority area
- Original version in PDF, disclosed on May 27, 2014
This summary covers an investment by Chayton Africa of Mauritius in Chobe Agrivision Company Ltd. in Zambia. The investor has applied for a MIGA guarantee of $26.6 million for a period of up to 15 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project involves the acquisition of Mpongwe Milling (2009) Ltd., an existing wheat and maize mill in Kitwe, in the Copperbelt Province of Zambia. Mpwonge Milling’s wheat and maize mills produce flour, bran, breakfast meal, and roller meal. The company markets their products directly to the public (sold at depots and the mill), as well as through retailers and bakeries. Chobe Agrivision intends to improve the performance of the mills, which are currently operating below capacity.
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.
The project’s main development objective is to increase food supply by improving the milling operation. It will have an important demonstration effect for other local producers and potential investors. The project is also expected to benefit the local economy through job creation, skills enhancement, and increased participation of local actors in the supply chain.
The Zambian government’s national development plan and the World Bank Group’s Country Partnership Strategy both identify the agricultural sector as a key area that can contribute to the country’s development and economic growth.
The proposed project is aligned with MIGA’s strategic priorities of supporting investments into countries eligible for assistance from the International Development Association and South-South investments.