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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
Afghanistan Project for Cotton and Oil Development (NAPCOD)
Project ID
Fiscal year
Not Active
Guarantee holder
Investor country
Host country
Environmental category
Gross exposure
 $0.8 million
Project type
MIGA has issued a guarantee of $893,588 to DAGRIS, S.A. for its equity investment in the New Afghanistan Project for Cotton and Oil Development (NAPCOD). DAGRIS of France owns 60 percent of the company. The guarantee is for a period of up to seven years and covers against the risks of currency transfer restriction, expropriation, and war and civil disturbance. The project is the first investment in Afghanistan to be guaranteed by MIGA.

MIGA’s coverage marks the first use of the Afghanistan Investment Guarantee Trust Fund (AIGF), a special fund for the country aimed at assisting Afghanistan in its reconstruction efforts by stimulating foreign direct investment through a program of political risk insurance. An additional guarantee, administered by MIGA, was provided for the project through the AIGF.

The NAPCOD project is expected to create sustainable growth in the cotton sector of the country by providing the technical and financial assistance that will enable cotton growers in northern Afghanistan to increase the production of cotton.

The NAPCOD is a joint venture between DAGRIS, S.A., majority-owned by the French government, and the government of Afghanistan. The project will produce, collect, and gin cotton, as well as refine the cotton seeds to produce animal feed and high-value oil. It is expected to create around 300 permanent jobs, in addition to stimulating local businesses that supply goods to the cotton industry. All of NAPCOD’s cotton production is destined for export, which should help improve the country’s balance of payments.

MIGA’s participation in the project is aligned with several agency priorities: encouraging investment in conflict-affected nations, and improving access to financing options for local SMEs. NAPCOD was underwritten through MIGA's new Small Investment Program (SIP), which makes it quicker and easier for smaller firms to apply for a standardized package of risk coverages. This is the fourth investment covered under the program.

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