Motorcare Limitada

MIGA has provided a $2 million guarantee to Kjaer Group A/S of Denmark to cover its $2.2 million equity investment in the form of reinvested retained earnings in Motorcare Limitada in Mozambique. The risks covered are transfer restriction, expropriation and war and civil disturbance, and the coverage period is 15 years.

The project is in the automotive retailing sector, and will expand Motorcare operations in Mozambique using revenues that would otherwise be transferred out of the country. The investment will have a positive developmental impact, as it will allow Motorcare to continue supporting transport fleets in Mozambique. The increased provision of vehicles to commercial companies and Mozambican nationals is expected to facilitate regional trade. Equally important, given that aid and development organizations are among Motorcare's most frequent customers, the project will expand and improve the company's ability to respond to emergencies--an important consideration in one of the most crisis-ridden areas of Africa. The project already provides training to its staff, and this investment will specifically expand the staff education program and facilitate further technology transfer. It is also expected to create a number of new permanent positions.