Agriflora Limited

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MIGA has issued a $3.6 million guarantee to the Industrial Development Corporation of South Africa Limited (IDC), of South Africa, to cover its $4 million equity investment in Agriflora Limited (Agriflora) in Zambia. The coverage is for a period of up to ten years, against the risks of Transfer Restriction, Expropriation and War and Civil Disturbance. Agriflora is the second largest agricultural company in Zambia and employs over 5,000 people. Its principal activities are the production and sale of specialty vegetables and flowers, primarily for export markets. MIGA's guarantee is for the expansion of existing horticultural production facilities and investment in supporting infrastructure to meet the increased international demand. The project involves constructing additional crop protection shelters and upgrading irrigation equipment and packing facilities.   The expansion will generate an estimated 2,400 additional jobs, many of which are mid-management positions. In addition, the project has an internal training department for its staff and is affiliated with a local training school to provide special training for managers and assistant managers. The project is also projected to generate over $20 million in foreign exchange earnings during the five-year expansion period. The expansion will strengthen the already positive upstream and downstream economic impacts on local industries, including transportation, distribution and agricultural supply companies.   The Agriflora project meets two of MIGA's priority concerns: it is a South-South Investment and in an IDA eligible country. Furthermore, it enhances trade between two African countries.

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