This summary covers an investment by Liongate Venture Fund I SPC of the Cayman Islands in Yalelo Limited in Zambia. The investor has applied for a MIGA guarantee of $6.0 million 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.
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability as it has potentially limited adverse social or environmental impacts. Key potential impacts include community and workers’ health and safety; minimal resettlement; natural resources management and pollution mitigation. The potential impacts are largely reversible and readily addressed through mitigation measures. The company has provided MIGA with a social and environmental impact assessment in line with MIGA’s Performance Standards.
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 proposed project is aligned with MIGA’s strategic priorities of supporting investments into countries eligible for concessional lending from the International Development Association.
The project would be underwritten through MIGA’s Small Investment Program.