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Projects

Project Brief

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
Ugacof Ltd.
Project ID
3027
Fiscal year
2005
Status
Not Active
Guarantee holder
Afriproduce Limited
Investor country
Switzerland
Host country
Uganda
Environmental category
A
Sector
Agribusiness
Gross exposure
 $3.1 million
Project type
Non-SIP
MIGA issued a contract of guarantee to Afriproduce Ltd. in the amount of $3.11 million to cover its equity investment in Ugacof, Ltd. The guarantee replaces MIGA’s existing coverage of a shareholder loan and equity investment by Afriproduce Ltd., which was issued in fiscal year 1999. The new guarantee is for a period of five years and covers against the risks expropriation and war and civil disturbance. The guarantee covers Ugacof’s fixed assets, including a new warehouse, which will increase capacity and improve production flexibility.

In the five years of Ugacof’s operation, the project has contributed to Uganda’s economy both through export levies and taxes and through export earnings. Community development has also been positively impacted through the transfer of technical knowledge and management skills. The project has replaced most of its expatriates with local staff in the management structure, and women are particularly well represented at the managerial and supervisory levels.

As part of its continued commitment to the local community, Ugacof provides local farmers with advice on increasing capacity. It also sensitizes growers to the quality of their coffee and offers assistance in diversifying crops so farmers can bring more varieties to market.

For more on this project, please see the project brief in the FY99 Annual Report and “Reaching out to Small and Medium Enterprises” in the FY04 Annual Report.

 
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