MIGA has issued $6.3 million in guarantees to Lebanese nationals Antoine Boulos and Gabriel Boulos covering their $5 million equity investment in Bel Papyrus Ltd. of Nigeria and $2 million equity investment in Bel Impex Ltd. of Nigeria. The guarantees are for 10 years and cover against the risks of expropriation and war and civil disturbance.
This investment will expand Bel Papyrus’s paper recycling plant and Bel Impex’s paper converting plant, both in Lagos. Bel Papyrus recycles waste paper such as old books, office paper and newspapers, most of which is converted by Bel Impex into toilet rolls, napkins, sanitary napkins, and facial tissues. This project involves moving the plants to new facilities with new equipment. The new Bel Papyrus plant is expected to reduce production costs and gradually increase output to approximately 11,000 tons from its current rate of 5,000 tons a year.
This project, considered a pioneer in Nigeria’s paper industry, should boost demand for waste paper while generating an estimated 66 new jobs. Staff training and expertise with new equipment will help develop the recycling and paper production industry. The project sponsors have also committed to procuring locally, which should result in multiplier effects in the transport, retail, and communications sectors.
This project meets MIGA’s priorities of supporting projects in Africa and in IDA countries. The project is also consistent with the World Bank Group’s objective of encouraging private sector-led growth in Nigeria.