The Latvian company LINEN has become the first company from Latvia to receive a political and financial risk insurance guarantee from a World Bank entity – the Multilateral Investment Guarantee Agency (MIGA) – for an international investment project in Kenya.
MIGA’s support will be used to implement a USD 9 million investment project in Kenya, expanding the company’s operations in the field of logistics and processing of raw materials for animal feed in one of the most important African countries. The MIGA guarantee provides protection against restrictions on money transfers, expropriation risk, and civil war risks. It will be in force for ten years.
The security provided by the guarantee allows the company to take on larger and more ambitious projects, which in the long term can also increase Latvia’s gross domestic product, tax revenues and create additional jobs both in Latvia and in partner countries. This is Latvia’s investment in global food security – an important step that, with the support of the World Bank, makes a real contribution to improving food availability and strengthening agricultural growth in Africa.
The Lionpro project of Linen’s unit in Kenya envisages the creation of modern and sustainable infrastructure that will ensure supply chain efficiency, quality, and compliance with the highest international standards, while making animal feed more accessible in remote regions at the lowest possible price.
“This is a triumph for Latvian entrepreneurs – we are no longer only recipients of support, but bold investors and drivers of development. It is an example of how, with persistence, competence and a clear vision, it is possible to attract some of the most complex financial instruments in the world. At the same time, the project is also a new bridge between Latvia and Africa – a cooperation platform that promotes regional development, knowledge transfer, strengthens the capacity of local farmers and supports sustainable development,” says Jānis Kuļikovskis, Chairman of the Board and owner of Linen and Lionpro Group.
“Forecasts indicate that by 2050 the population of Sub-Saharan Africa will have doubled, which makes it especially important to ensure affordable food at an acceptable price for the inhabitants of this region. In Kenya, agriculture is the backbone of the national economy, yet small farmers still face significant challenges that limit productivity and increase costs. The aim of this project is to reduce these obstacles, strengthen the agricultural value chain and in the long term promote food security,” notes MIGA Executive Vice President Hiroshi Matano.
According to the 2023 Africa Agriculture Trade Monitor (AATM) report, food exports from Africa to Europe could increase by 20–26% if non-tariff requirements, including sanitary and phytosanitary standards, were improved. The project developed by Lionpro in Kenya is directly aimed at implementing these requirements, which in the long term will enhance Africa’s ability to increase food production and improve its compliance with international standards. The project, launched in the summer of 2024, is the result of close cooperation between Lionpro and MIGA specialists, observing high principles of good governance, including social responsibility, environmental protection and respect for workers’ rights. This initiative serves as a foundation for future development. Lionpro is already planning similar projects in West Africa, as well as expansion into Asian and South American markets, creating a global feed supply platform that promotes food security and sustainability.
MIGA’s announcement notes that in Kenya, 75% of those employed in agriculture are women. Lionpro’s gender equality action plan, together with a women-focused agricultural network, will improve women’s access to quality resources, training, and best practices, thereby boosting the productivity of small-scale farmers.
LINEN is an innovative family business founded in Latvia with more than 30 years of experience in the processing and trade of animal by-products. The company, which is part of the Lionpro Group, operates in more than 50 countries in Europe, Africa, Asia and South America, providing sustainable solutions in the animal and pet feed, as well as organic fertilizer and hygiene product ingredient, biofuel and industrial production sectors. With 44 employees in Riga and 21 outside the European Union, the company delivered more than 132,000 tons of processed products in 2024, helping to reduce food waste and carbon emissions.
In 2024 LINEN had a turnover of 60 million dollars and, according to the Lursoft database, its parent company LIONPRO is registered in Amsterdam.
The Latvian family business, which has become a global leader, promotes the reuse of resources, reducing food waste, carbon emissions and deforestation. LINEN is an active member of several industry associations: EFPRA, BNI and NARA, thereby contributing to the development of sustainable and innovative practices in the animal feed production sector.
Originally published at https://inc-baltics.com/linen-sanem-miga-politisko-un-finansu-risku-apdrosinasanas-garantiju-darbam-kenija-ta-nodrosina-investiciju-drosibu/
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