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The Multilateral Investment Guarantee Agency (MIGA) is providing $8.6-million to US-based EcoPlanet Bamboo Group, covering an equity investment by the company in EcoPlanet Bamboo South Africa, to contribute to sustainable agricultural development in the Eastern Cape.
MIGA, the political risk insurance and credit enhancement arm of the World Bank Group, announced its support for the investment on Tuesday.
EcoPlanet had bought degraded land in an impoverished area to convert into bamboo plantations to produce activated carbon and biocharcoal for sale to local and export markets.
MIGA was covering the project against the risks of transfer restriction, expropriation and war and civil disturbance for up to ten years.
“MIGA’s investment insurance has [previously] been fundamental in helping us manage risk while realising our vision of deploying conscious capital to generate triple bottom line results – financial, social and environmental,” EcoPlanet Bamboo CEO Troy Weisman noted in a statement.
EcoPlanet’s investment in South Africa was part of the company’s international expansion, which was geared toward effectively curbing global deforestation by providing a sustainably grown alternative fibre and green technlogy solutions across multipe industries.
In 2012, MIGA provided an investment guarantee for EcoPlanet’s bamboo plantations in Nicaragua, in North America, which caught the attention of the US Department of State.
Subsequently, EcoPlanet in Nicaragua was presented an Excellence in Business award that recognised companies playing vital roles around the world in supporting values such as sustainable development, respect for human and labour rights and environmental protection.
“We’re pleased to continue our support for EcoPlanet’s sustainable investments that bring jobs and skills to areas of high poverty and unemployment,” stated MIGA executive VP and CEO Keiko Honda.