On March 28, 2012, MIGA issued guarantees of €1.9 million ($2.7 million equivalent) covering an investment by Fons Mediterrània Capital, F.C.R. de Régimen Simplificado of Spain (FMC) in Soroa Pépinières, S.A.R.L. (Soroa) in Morocco. The coverage is for a period of up to five years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves coverage of Soroa, an existing portfolio company of FMC, a Spanish private equity fund. Soroa is dedicated to the production of potted flowers and ornamental potted plants for distribution in the Moroccan market. It focuses on spring and summer seasonal flowers such as geraniums; aromatic plants such as lavender, thyme, and rosemary; and bushes such as abelias, convolvulus, and junipers. The plants are grown in a greenhouse and exterior fields and sold to private individuals, businesses, and landscape professionals.
Soroa has had a positive impact on the local economy of Larache since 2008. The main impacts of FMC’s involvement in the project are greater employment generation and knowledge transfer. Women make up 81 percent of FMC’s staff. FMC has introduced new social responsibility, corporate governance, and management best practices into the company, which should have a positive demonstration effect on other enterprises in Larache. Moreover, Soroa has supported the development of its workforce by sponsoring external educational courses for its best employees.
MIGA’s support to FMC and this project is consistent with the first pillar of the World Bank Group’s Country Partnership Strategy for Morocco, which emphasizes employment, growth and competitiveness.
In addition, the project is consistent with MIGA’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa. The project was underwritten through MIGA’s Small Investment Program.
