On September 30, 2015, MIGA issued guarantees of $11.8 million covering equity investments by Vegetable Oil Industries Company, Yusor Company for Investment, Pan Gulf Company for Investment, and The Alzahra Company for Investment of the West Bank and Gaza as well as Coca Cola Midi S.A.S. of France in National Beverage Company (NBC) Gaza Branch. The guarantees through MIGA’s West Bank and Gaza Investment Guarantee Trust Fund are for a period of up to 10 years against the risks of expropriation and war and civil disturbance. The project also benefits from reinsurance support from MIGA’s Conflict and Fragile Economies Facility.
The project involves the expansion of NBC Gaza Branch’s operations, including the addition of a manufacturing facility for beverages dedicated to serving Gaza’s domestic market. Established in 1999, NBC Gaza Branch distributes and sells products directly to approximately 5,000 retailers across the Gaza Strip such as supermarkets, restaurants, and grocery stores. The facility is located in the Gaza Industrial Estate.
The expansion is expected to create 300 new direct jobs and an estimated 1,000 indirect employment opportunities. The project will also contribute to the development of the private sector in Gaza through linkages and demonstration effects. It will also encourage the recycling of existing bottles. NBC uses state-of-the-art manufacturing technologies and provides significant training opportunities. The project is aligned with the World Bank’s Group’s Interim Strategy for West Bank and Gaza, which seeks to promote a better investment environment.
MIGA’s support for this project is aligned with the Agency’s priorities of supporting South-South investments and investments into conflict-affected economies and economies eligible for concessional financing from the International Development Association.