Congo International Company SPRL
MIGA has issued a guarantee of $630,000 to AMCO Fabrics Private Limited, of India, covering its $700,000 equity investment in Congo International Company SPRL. The coverage is for up to 10 years and covers the risks of war and civil disturbance, transfer restriction, and expropriation.
The project involves the installation and operation of a PVC pipe manufacturing plant on a greenfield site outside Lubumbashi in Katanga Province. The initial manufacturing capacity of the plant is estimated to be a few hundred tons a year. The plant will serve a market that is now entirely dependent on imports and is expected to grow as the local economy stabilizes. The sponsor will also be able to offer the pipes at lower prices than imported goods due to the country’s limited transportation infrastructure.
The project is expected to employ about 25 local workers at wages and benefits that compare favorably to practices on the local market. It will also contribute to the economy through local sourcing of goods and services, mostly related to transportation, fuel, utilities, and housing costs.
This guarantee was underwritten through MIGA’s Small Investment Program and is aligned with the agency’s commitment to supporting South-South investments, investment in sub-Saharan Africa, and investments in conflict-affected countries. MIGA’s participation in this project was crucial for the investor to secure the financing needed to proceed with the project.