On March 12, 2013, MIGA issued a guarantee of $2.9 million covering an equity investment by Liongate Venture Fund I SPC of the Cayman Islands in Yalelo Limited in Zambia. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the establishment of an aquaculture facility on the Zambian side of Lake Kariba in Siovonga province. The project will harvest the local species of tilapia and the fish will be sold in Lusaka. The project is expected to produce 2,500 tons of tilapia in the first year, increasing to 7,600 tons by year three.
Fish production in Zambia is not meeting local demand and the country imports over 40,000 tons of frozen fish per year. Yalelo will contribute to Zambian food security by providing a local source of tilapia on a commercial scale. The project is also expected to generate 100 local jobs.
The project was underwritten through MIGA’s Small Investment Program and is aligned with MIGA’s strategic priority of supporting investments into countries eligible for concessional lending from the International Development Association.