MIGA issued a $9 million guarantee for a shareholder loan made by Agro-Industrial Investment and Development S.A. of Panama to Société des Grands Moulins de Guinée S.A., a mill that produces flour for local distribution and bran for export. This follows previous contracts issued by MIGA for the initial equity and debt investments in the project enterprise. The new coverage is for an additional shareholder loan to restructure and refinance the project's debt. It offers protection against the risks of expropriation, and war and civil disturbance.
The flour mill, the only one in the country, helps offset the need to import flour. In addition, the project is employing local workers, providing staff training, and initiating community involvement through university training programs and local sports events. The project is also benefiting local flour distributors and users by providing cheaper, fresher flour, saving about $4 million a year in imports and generating export and foreign exchange revenue.