Guarantee and technical support to enhance supply chains, support smallholder farmers, and strengthen the agricultural value chain.
The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, issued a guarantee of $9 million to SIA “L.J. Linen” of Latvia to cover its investments in its Kenyan subsidiary, Lionpro Group (K) Limited, against risks of transfer restriction, expropriation, and war and civil war disturbance. The guarantee provides coverage for up to 10 years.
In Kenya, where agriculture contributes 34% of GDP and employs over 70% of the rural population, smallholder farmers face ongoing challenges, from fragmented markets to limited access to capital, that undermine productivity and increase food costs.
The guarantee will help Lionpro expand its operations, scaling the sourcing and distribution of premium animal and vegetable proteins and fats for animal feed production. This will strengthen food and nutrition security in Kenya by improving the availability of high-quality feed ingredients through a reliable supply chain, an expanded distribution network, and capacity-building initiatives. It will also encourage other market participants to adopt practices that boost resilience to shocks, including supply chain development, regional expansion, and reduced price volatility.
“We recognize the urgent need to ensure affordable, accessible food as Sub-Saharan Africa’s population is set to double by 2050,” said Hiroshi Matano, MIGA Executive Vice President. “In Kenya, agriculture is the backbone of the economy, yet smallholder farmers face chronic challenges that limit productivity and drive-up costs. Through this project, we aim to address these barriers, strengthen the agricultural value chain, and enhance food security for the future.”
Women make up 75% of Kenya’s agricultural labor force. Lionpro’s Gender Action Plan, in partnership with a woman-focused agricultural network, will improve access to quality inputs, training, and best practices, enhancing productivity, resilience, and food security for women smallholder farmers.
“As Latvian companies expand beyond traditional markets, professional risk insurance becomes increasingly essential. Today marks a milestone: L.J. Linen is the first Latvian enterprise to secure MIGA’s political risk guarantee for its investment in Kenya. This partnership not only strengthens Latvia’s role as an investor country within the World Bank Group, but also showcases how agile and globally oriented private sector actors can mobilize capital for sustainable development. This project reflects the growing capacity of Latvian companies to contribute meaningfully to global development goals and to operate with confidence in complex international environments,” said Arvils Ašeradens, Minister of Finance of the Republic of Latvia.
MIGA’s guarantee will support Lionpro in increasing inventory, investing in regional warehousing and logistics, and reaching about 1,400 new customers, primarily smallholder farmers and feed millers. This will boost Lionpro’s role in the agricultural value chain and contribute to national food security and small and medium-sized enterprise development.
“MIGA’s guarantee provides a safer environment for our investments in Kenya and allows us to focus on long-term growth. It is a strong recognition of our team and of Latvian entrepreneurship as a whole – a clear signal that Latvia can compete with world-class companies by using sophisticated international financial instruments. Our investment in Kenya is not just a business project; it helps local farmers become more self-reliant, strengthens regional food security, and generates positive socio-economic impact. This project also builds a bridge between Latvia and Africa – a platform for cooperation that promotes regional development, knowledge transfer, and sustainable growth,” said Jānis Kuļikovskis, Lionpro Group Chairman of the Board.
MIGA’s guarantee will also help boost investor confidence in expanding further into the Kenyan market and enhance the company’s ability to secure financing from its parent firm. In addition, through the Fund for Advancing Sustainability trust fund, MIGA will provide a technical assistance grant to develop its environmental and social management systems.
About SIA “L.J. Linen”
SIA “L.J. Linen” (LJL) is a family-owned agro-products trading enterprise headquartered in Latvia. Established in 1994, LJL operates across four continents and over 50 countries, connecting approximately 160 suppliers with clients globally. It specializes in trading animal-origin products and grains for use in animal feeds, fertilizers, pet food, aquafeed, biodiesel, and cosmetics. In 2024, LJL shipped over 5,000 containers, sold 132,000 metric tons of animal feed, and achieved a turnover of US$60 million. LJL adheres to GMP+ standards, ensuring a safe and sustainable feed chain. LJL’s African operations are managed through subsidiaries in Nigeria, Kenya, Uganda, Côte d'Ivoire, and Rwanda, with Lionpro Kenya serving as the central hub for the region. Additional information: www.lionpro.com.
About the World Bank Group Guarantee Platform
Initiated in 2024, the World Bank Group Guarantee Platform consolidates guarantee products and experts from across the World Bank Group at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.