National Bicycles Company Limited
In its first guarantee contract issued to an Indian investor, MIGA issued $714,286 in coverage for Avon Cycles Limited (India) for its $1.8 million investment in the privatization and expansion of a bicycle manufacturing plant in Dar-es-Salaam. MIGA insurance covers Avon's investment against the risk of war and civil disturbance.
The project, National Bicycles Company Limited (Nabico), a joint venture with a British holding company, is the only producer of bicycles in Tanzania. The project enterprise will modernize Nabico's production line to reduce operating costs and increase profitability.