MIGA is providing a $1 million guarantee to Desco A.B., a Swedish construction company. The guarantee covers an equity investment in Desco Angola Lda. against the risks of war and civil disturbance, as well as expropriation. The project entails the construction, ownership, and management of an office building in the Miramar district, located in central Luanda, where there is a significant shortage of quality office space. This is the agency's fourth guarantee for a project in this IDA-eligible country.
This SME will employ approximately 40 local people during the construction phase and will contribute to raising the overall construction standards in Luanda. Other externalities include the development of related businesses associated with maintenance and repairs. The building is expected to generate more than $200,000 in tax revenues for the government of Angola during the first five years of operation. Approximately 80 percent of all goods and services will be procured locally.