On April 21, 2017, MIGA issued reinsurance of $18.9 million of the Overseas Private Investment Corporation’s (OPIC) proposed coverage to SilverStreet Private Equity Strategies Soparfi S.à r.l., an agricultural fund focused on investing in sub-Saharan Africa. MIGA provided reinsurance to OPIC for SilverStreet’s investment in Silverlands Zambia Limited (SZL). The reinsurance is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
SZL is purchasing four existing farms in Zambia totaling 5,682 hectares to develop an integrated commercial farming unit. The project involves land clearing, tilling, levelling, and construction of an irrigation system to grow crops including maize, soya, wheat, and barley. The project is also exploring rearing up to 800 herd of cattle on the non-arable land. Related infrastructure such as housing, storage silos, workshops, fuel and chemical storage, cattle pens, fenced grazing pastures, and access roads will be constructed. The farms are in the Luwombwa farming area near Zambia’s border with the Democratic Republic of Congo.
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 implement new farming technologies and contribute to skills development.
MIGA’s support of SZL is consistent with Zambia’s Vision 2030 and the government’s Sixth National Development Plan (SNDP). The SNDP specifically identifies agriculture as a potential growth area that could unlock Zambia’s natural resource endowments to provide a basis for development.
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.