MIGA and OPIC team to unlock investments in African agriculture
Tuesday, June 10, 2014
A new partnership between a U.S. government agency, a World Bank Group member and a private equity fund plans to help about half a million small-scale farmers boost yields and improve food security in sub-Saharan Africa.
The U.S. Overseas Private Investment Corp. and the Multilateral Investment Guarantee Agency announced Monday that they would create a $350 million political risk facility to support agribusiness investments in sub-Saharan Africa.
OPIC will provide the political risk coverage and MIGA will take on 60 percent of the risk of each investment made by the Silverlands Fund, a private equity fund that focuses on agribusiness in several sub-Saharan African countries.
“We are helping Silverlands to mobilize and deploy critically needed new private investment in sub-Saharan Africa’s agricultural sector,” said John Moran, OPIC’s vice president for insurance, in a statement.