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Angola

Aceria de Angola SA

$70 million
Manufacturing
Project Brief
Not Active

Project Facts

Project Facts

Project Facts

Angola
Project ID
11950
Guarantee Holder
KLF Capital S.a.r.l.
Investor Country
Luxembourg
Environmental Category
B
Date SPG Disclosed
April 16, 2015
Projected Board Date
June 12, 2015
Project Type
Non-SIP
Fiscal Year
2015

Project description

On June 12, 2015, MIGA issued a guarantee of $70 million covering an equity investment by KLF Capital S.a.r.l. of Luxembourg in Aceria de Angola SA in Angola. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project consists of the construction of a steel rebar plant northeast of Luanda. MIGA’s coverage is for the first phase of the project, which involves the construction of a melting shop that will convert scrap metal into steel billets and a rolling mill that will produce rebar and wire rod from these billets. The project will have an installed capacity of 250,000 tons per year upon completion of phase one.

The project will contribute to economic diversification in Angola and increase economic activity outside of the oil sector, which accounts for roughly half of the country’s GDP. The company will eventually employ 425 Angolan nationals when the plant is in operation and is currently employing nearly 500 people during the construction phase. An additional 1500 indirect jobs are expected to be generated through the scrap-collection companies. The project will also provide the first significant local production of steel rebar.

The first pillar of the World Bank Group’s Country Partnership Strategy for Angola focuses on supporting integrated national economic diversification by revitalizing rural economies toward greater competitiveness and employment. The focus will be on the strengthening of the non-oil economy, with emphasis on recuperating traditional lines of business that suffered greatly during the war. MIGA’s support for this investment fully is aligned with these objectives.