Supporting Raisins Processing in Afghanistan

MIGA is creating new market opportunities for Afghanistan's agricultural and horticultural development by:              

• Facilitating private sector investment through the upstream support, financing solutions and risk mitigation tools

• Expanding the agricultural and horticultural development of Afghanistan's raisin production and processing

By applying an MFD proactive approach involving all WBG parties:

• IDA is building drying and storage capacity in line with international best practices

• IFC is extending a working capital facility to Rikweda, a greenfield raisin processing project (the first financing of its kind in Afghanistan

• IFC’s AS is extending technical assistance and equipment to farmers to improve productivity and enhance agricultural practices

• MIGA is extending risk mitigation tools to ensure the business continuity and to help investors fulfill their financial obligations in the event of war or insurgent attacks.

• Global Agriculture and Food Security Program (GAFSP) and IDA 18 Private Sector Window (PSW) are providing first loss coverages for the IFC loan and MIGA guarantee respectively
   

The Rikweda raisin project is expected to:

• Double Afghanistan’s local processing capacity for raisins by adding a production capacity of 15,000 tons per year

• Procure raisins from approximately 3,000 local smallholder farmers and middlemen

• Improve farmers livelihoods by integrating farmers into global supply chain

• Provide employment opportunities for 60 direct jobs and a number of indirect jobs

• Provide farmers with sustainable access to consumer markets

• Increase export of raisins which is Afghanistan’s top legal agricultural export