On June 25, 2018, MIGA agreed to issue up to $5,151,900.96 in guarantees covering an equity investment from Mr. Mase Rikweda and Mr. Sulayman Rikweda to Rikweda Fruit Process Company in Afghanistan. The guarantees are being issued for up to 10 years against the risks of war and civil disturbance.
The greenfield project involves the establishment and operation of a raisin producing and processing plant, Rikweda Fruit Process Company, located in Kabul, Afghanistan. The plant will have a 15,000 tons per annum production capacity and will directly procure raisins from approximately 3,000 farmers. Rikweda Fruit Process Company was formed in 2014 to specialize in the agricultural and horticultural development of Afghanistan's raisin production and processing sector.
MIGA’s risk exposure under the guarantee(s) will be shared with the IDA-Private Sector Window (PSW)
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation (IFC) for its investment in the project.
Rikweda will directly procure raisins from approximately 3,000 farmers, providing them with sustainable access to consumer markets. Technical assistance and equipment will be provided to farmers to improve productivity and enhance agricultural practices. As such, the project will support a domestic value chain by doubling Afghanistan’s local processing capacity for raisins. Exports of raisins would also generate additional revenues. The project will provide employment opportunities for 60 direct jobs and a number of indirect jobs across the value chain. By supporting the female producers, the Project will help pomote women’s role in the sector.
MIGA’s support for this investment is aligned with the World Bank Group’s Afghanistan - Country Partnership Framework for the period FY17 to FY20, particularly with regard to supporting inclusive growth by laying the foundation for private sector development. This project is also aligned with MIGA's strategy of facilitating investments in conflict-affected environments, as well as countries eligible for assistance from the International Development Association.
The project would be underwritten through MIGA's Small Investment Program.