On May 18, 2018, MIGA agreed to issue $20,682,000 in reinsurance to the Overseas Private Investment Corporation’s (OPIC) for coverage it's providing to SilverStreet Private Equity Strategies Soparfi S.à r.l., an agricultural fund focused on investing in sub-Saharan Africa. The reinsurance is issued for a period of up to 5 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
SVL was established in April 2015, to acquire, develop and manage 198 hectares of existing table grape vineyards at Riverside farm (formerly Nivex) and Lakeside farm (formerly Nagrapex) and up to an additional 177 ha of development land at Hillside farm (formerly Golf), which together comprise the SVL Project. The SVL Project is located in Aussenkehr, Namibia, on the Orange River along the Namibian-South African border, approximately 645 km to the South East of Windhoek. The table grapes are designated for the export market. The existing vineyards include equipment and infrastructure, management housing, good access and connection to the national electricity grid (as well as supported by a small solar power project dedicated to the Project), while the development land comes with adequate water rights to expand the total area of vineyards to approximately 375 hectares over time.
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.
The project’s main development objective is to support agricultural development by expanding land resources under cultivation and increasing yields. The project is expected to benefit the local economy through job creation and opportunities for increased participation of local actors in the supply chain. The project will also improve farming technologies and contribute to skills development.
MIGA’s support of SVL is consistent with Namibia’s Fourth National Development Plan (NDP4). The NDP4 specifically priorities agriculture as a focus sector to create necessary momentum for higher economic growth.
MIGA’s proposed support to OPIC is in accordance with MIGA’s mandate to cooperate with national entities of its member countries, as stated in MIGA’s Convention.