MIGA issued guarantees of $7.52 million in total to cover: (i) an equity investment from Rikweda Trading DMCC of the United Arab Emirates (UAE) of up to $5.15 million on June 25, 2018 for 10 years; and (ii) a loan guarantee from Mr. Mase Rikweda of the United Kingdom of up to $2.38 million on March 20, 2019 for 5 years against the risks of war and civil disturbance.
The greenfield project involves the establishment and operation of a raisin producing and processing plant, namely Afghan Process Company, located in Kabul, Afghanistan. The plant will have a 15,000 tons per annum processing capacity. The project will directly procure raisins from approximately 3,000 smallholder farmers and middlemen, and the processed raisins will be exported to Eastern Europe and Central Asia. Afghan 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 guarantees was 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.