MIGA 2024 ANNUAL REPORT 12.6M SINCE ITS INCEPTION IN 1988, THE AGENCY HAS ISSUED $84.5 BILLION OF GUARANTEES IN SUPPORT OF OVER 1,030 PROJECTS IN 123 HOST COUNTRIES. ABOUT MIGA Our mandate is to encourage foreign direct investment to developing countries by providing noncommercial guarantees (that is, political risk insurance, credit enhancement products, and trade finance guarantees) to investors and lenders. In fiscal year 2024 (FY24), the Multilateral Investment Guarantee Agency (MIGA) issued a record $8.2 billion in new guarantees across 40 projects. Through these projects, Avoid more than 647,000 metric tons of MIGA remained focused on encouraging private investment carbon dioxide (CO2) emissions annually to facilitate economic development in host countries by helping clients manage and mitigate noncommercial risks. In FY24, 95 percent of the 40 projects supported at least one of MIGA’s strategic priority areas: Its commitment to International Development Association (IDA)–eligible countries In February, the World Bank Group announced that beginning was substantial, supporting 26 projects (65 percent of on July 1, 2024, a new one-stop guarantee platform would total projects supported). MIGA’s engagement in fragile and bring together guarantee experts and products from across conflict-affected situations (FCS) was also notable, supporting the organization. The platform is housed at MIGA, making 10 projects, representing 25 percent of the total projects it easier for clients to do business with the Bank Group. supported. And climate finance initiatives were a significant focus this year, with MIGA issuing guarantees for 30 projects An institution of the Bank Group, MIGA is committed (representing 75 percent of the total projects). to creating strong development impact and supporting projects that are economically, environmentally, and socially As a result, the FY24 issuances are expected to achieve the sustainable. MIGA helps investors mitigate the risks of following: restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance. It also offers trade finance guarantees, as well as credit enhancement on obligations of sovereigns, sub-sovereigns, state-owned enterprises, and regional Provide 2.2 million people development banks. with access to mobile internet Add 12.2 million new subscribers to mobile money services Generate $657.8 million in tax revenue per year to host governments MIGA ANNUAL REPORT 2024 1 MESSAGE FROM THE PRESIDENT DELIVERING ON OUR COMMITMENTS REQUIRES US TO DEVELOP NEW AND BETTER WAYS OF WORKING. IN FISCAL 2024, WE DID JUST THAT. AJAY BANGA In fiscal 2024, the World Bank Group adopted a bold new we have reorganized the World Bank’s global practices vision of a world free of poverty on a livable planet. To achieve into five Vice Presidency units—People, Prosperity, Planet, this, the Bank Group is enacting reforms to become a better Infrastructure, and Digital—for more flexible and faster partner to governments, the private sector, and, ultimately, engagements with clients. Each of these units reached the people we serve. Rarely in our 80-year history has our important milestones in fiscal 2024. work been more urgent: We face declining progress in our fight against poverty, an existential climate crisis, mounting We are supporting countries in delivering quality, affordable public debt, food insecurity, an unequal pandemic recovery, health services to 1.5 billion people by 2030 so our children and the effects of geopolitical conflict. and grandchildren will lead healthier, better lives. This is part of our larger global effort to provide a basic standard of care Responding to these intertwined challenges requires a through every stage of a person’s life—infancy, childhood, faster, simpler, and more efficient World Bank Group. We adolescence, and adulthood. To help people withstand food- are refocusing to confront these challenges not just through affected shocks and crises, we are strengthening social funding, but with knowledge. Our Knowledge Compact for protection services to support half a billion people by the end Action, published in fiscal 2024, details how we will empower of 2030—aiming for half of these beneficiaries to be women. all Bank Group clients, public and private, by making our wealth of development knowledge more accessible. And MIGA ANNUAL REPORT 2024 2 MESSAGE FROM THE PRESIDENT Recognizing that digitalization is the transformational opportunity of our time, we are collaborating with governments in more than 100 developing countries to enable digital economies. Our digital lending portfolio totaled $5.6 billion in commitments as of June 2024; and our new Digital Vice Presidency unit will lead our efforts to establish the foundations of a digital economy. Key initiatives include building and enhancing digital and data infrastructure, ensuring cybersecurity and data privacy for institutions, businesses, and citizens, and advancing digital government services. Delivering on our commitments requires us to develop new and better ways of working. In fiscal 2024, we did just that. We are squeezing our balance sheet and finding new opportunities to take more risk and boost our lending. Our new crisis preparedness and response tools, Global Challenge Programs, and Livable Planet Fund demonstrate how we are modernizing our approach to better drive impact and outcomes. Our new Scorecard radically changes how we track results. But we cannot enable development on our own. We need We are helping developing countries create jobs and partners from both the public and private sectors to join employment, the surest enablers of prosperity. In the next our efforts. That’s why we are working closely with other 10 years, 1.2 billion young people across the Global South multilateral development banks to improve the lives of people will become working-age adults. Yet, in the same period and in developing countries in tangible, measurable ways. Our the same countries, only 424 million jobs are expected to be deepening relationship with the private sector is evidenced created. The cost of hundreds of millions of young people with by our Private Sector Investment Lab, which is working to no hope for a decent job or future is unimaginable, and we are address the barriers preventing private sector investment in working urgently to create opportunity for all. emerging markets. The Lab’s core group of 15 Chief Executive Officers and Chairs meets regularly, and already has informed In response to climate change—arguably the greatest our work—most notably with the development of the World challenge of our generation—we’re channeling 45 percent of Bank Group Guarantee Platform. annual financing to climate action by 2025, deployed equally between mitigation and adaptation. Among other efforts, we The impact and innovations we delivered this year will allow intend to launch at least 15 country-led methane-reduction us to move forward with a raised ambition and a greater programs by fiscal 2026, and our Forest Carbon Partnership sense of urgency to improve people’s lives. I would like to Facility has helped strengthen high-integrity carbon markets. recognize the remarkable efforts of our staff and Executive Directors, as well as the unwavering support of our clients Access to electricity is a fundamental human right and and partners. Together, we head into fiscal 2025 with a great foundational to any successful development effort. It will sense of optimism— accelerate the digital transformation in developing countries, and determination to create a better Bank for a better world. strengthen public infrastructure, and prepare people for the jobs of tomorrow. But half the population of Africa—600 AJAY BANGA million people—lacks access to electricity. In response, we President of the World Bank Group have committed to provide electricity to 300 million people in and Chairman of the Board of Executive Directors Sub‑Saharan Africa by 2030 in partnership with the African Development Bank. MIGA ANNUAL REPORT 2024 3 MESSAGE FROM THE MIGA BOARD OF DIRECTORS THE 2023 ANNUAL MEETINGS MARKED AN IMPORTANT MILESTONE FOR THE WORLD BANK GROUP AS DEVELOPMENT COMMITTEE MEMBERS ENDORSED THE INSTITUTION’S NEW VISION OF A WORLD FREE OF POVERTY ON A LIVABLE PLANET. In fiscal 2024, the World Bank Group Boards of Executive Investment Bank, the European Bank for Reconstruction Directors supported the institution’s ongoing efforts to and Development, the Inter-American Development Bank, become a better Bank. These operational enhancements are and the Islamic Development Bank); and streamlined the both timely and necessary: While economic growth prospects implementation of the World Bank’s Environmental and Social for the near term have improved slightly, easing fears of a Framework. global recession, the post-pandemic recovery remains weak in many developing countries, and pre-existing social stresses Executive Directors commend the Bank Group’s commitment endure. The world is increasingly unlikely to achieve the to devote 45 percent of annual financing to climate 2030 Sustainable Development Goals, and climate change, action by 2025, deployed equally between mitigation and biodiversity loss, and escalating geopolitical tensions further adaptation. IFC and MIGA will intensify efforts to boost threaten development. To help countries address these private sector financing for climate adaptation. Executive intertwined challenges, the World Bank Group committed Directors also applaud the Bank Group’s 2030 commitments $117.5 billion (including $37.6 billion from IBRD, $31.2 billion to provide electricity access to 300 million people in Africa from IDA, $31.7 billion from IFC, $8.2 billion from MIGA, and in partnership with the African Development Bank and to $8.9 billion in recipient-executed disbursing activities) in fiscal provide quality, affordable healthcare to 1.5 billion people. 2024. The Bank Group is enhancing its financing model to create The 2023 Annual Meetings marked an important milestone safer, more prosperous communities in low-income countries. for the World Bank Group as Development Committee Since the 2023 Annual Meetings, the Bank Group has raised members endorsed the institution’s new vision of a world free funds for the IDA Crisis Facility and maintained IDA’s financial of poverty on a livable planet. Since then, the Bank Group has capacity of $30 billion per year for fiscal 2024 and 2025. implemented core reforms to build a better Bank, including Bank Group management has proposed enhancements to enhancing its financial capacity; reinforcing its emphasis IDA’s Capital Adequacy Framework that are expected to on results; and improving its operational effectiveness expand IDA’s financing by $20 billion through fiscal 2037. and efficiency. The Bank Group has also developed a new Executive Directors anticipate the funding generated by Scorecard and crisis preparedness and response tools; these measures, coupled with strong donor contributions launched the Global Challenge Programs and World Bank for the December 2024 IDA replenishment, will improve lives Group Guarantee Platform; developed a Knowledge Compact; and equip nations to tackle immediate crises and long-term forged four new partnerships (with the Asian Infrastructure development goals. Beyond financing, achieving these goals MIGA ANNUAL REPORT 2024 4 MESSAGE FROM THE MIGA BOARD OF DIRECTORS Front row (left to right): Mr. Parameswaran Iyer, India; Mr. Abdulaziz Al Mulla, Kuwait; Mr. Ernesto Acevedo, Mexico; Mr. Felice Gorordo, United States (Alternate Executive Director); Mr. Vel Gnanendran, United Kingdom; Mr. Matteo Bugamelli, Italy; Ms. Junhong Chang, China; Mr. Dominique Favre, Switzerland; Ms. Ayanda Dlodlo, South Africa; Mr. Abdoul Salam Bello, Niger and Mr. Arnaud Buisse, France Back row (left to right): Mr. Daniel Pierini, Argentina; Ms. Lene Lind, Norway; Ms. Katharine Rechico, Canada; Mr. Suhail Saeed, Saudi Arabia; Mr. Michael Krake, Germany; Mr. Marcos Chiliatto, Brazil; Mr. Hideaki Imamura, Japan; Mr. Floribert Ngaruko, Burundi; Mr. Il Young Park, Korea (Republic of); Ms. Nathalie Francken, Belgium; Mr. Wempi Saputra, Indonesia; Mr. Eugene Rhuggenaath, Netherlands; Mr. Roman Marshavin, Russian Federation; and Mr. Tauqir Shah, Pakistan requires the unwavering commitment of current and new Through travel to several client countries this year, Executive donors, client countries, and the World Bank. Directors witnessed the Bank Group’s impact firsthand. During trips to Saudi Arabia (December 2023); China, Fiji, and Samoa IBRD has made significant progress in enhancing its financial (January–February 2024); Kazakhstan, Kyrgyz Republic, and capacity while continuing to protect its triple-A rating and Tajikistan (March 2024); and Kenya and Estonia (May 2024), long-term financial stability. New financial instruments—such Board members engaged with key government officials, private as hybrid capital, a portfolio guarantee platform, and the sector representatives, Bank Group staff, beneficiaries of Bank Livable Planet Fund—have been approved, and contributions Group operations, donors, and have already been pledged by some Bank Group shareholders. other pertinent stakeholders. The Board recently approved the Framework for Financial Incentives, which will encourage IBRD countries to boost Looking ahead to fiscal 2025, the Executive Directors and investments in global challenges with cross-border impact. management remain committed to sharpening the Bank Progress has been made toward enhancing the value of Group’s approach to better serve people in low-income callable capital. In addition, IFC and MIGA are expanding countries. The Executive Directors extend their gratitude to their investment and guarantee offerings, including new Ajay Banga for his leadership in spearheading the evolution instruments to mobilize private capital. Executive Directors of the Bank Group, and sincerely thank all staff across the look forward to the further operationalization of the Loss and institution for their continued hard work and unwavering Damage Fund, which is expected to be a significant resource commitment to the mission of ending poverty on a livable in assisting developing nations affected by natural disasters planet. linked to climate change. Executive Directors welcome the Bank Group’s deepening partnerships with multilateral development banks and the private sector. The One World Bank Group Partnership Charter, published in May 2024, highlights the principles that define our work with partners and restates our vision of the partner we aspire to be. The Private Sector Investment Lab, launched in June 2023, is working to address the barriers preventing private sector investment in emerging markets. MIGA ANNUAL REPORT 2024 5 MESSAGE FROM HIROSHI MATANO MIGA’S FY24–26 STRATEGY AIMS TO DEEPEN OUR COMMITMENT IN CRITICAL AREAS: INCREASING ENGAGEMENT IN IDA AND FCS COUNTRIES AND INCREASING SUPPORT FOR PROJECTS THAT ADDRESS CLIMATE CHANGE AND ADVANCE GENDER EQUALITY. HIROSHI MATANO Executive Vice President MIGA ANNUAL REPORT 2024 6 MESSAGE FROM HIROSHI MATANO In FY24, MIGA issued a record amount of guarantees and Africa, $1.9 billion in Latin America and the Caribbean, made a significant change in our business structure. We and $449 million in South Asia. issued $8.2 billion in new guarantees across 40 projects, supporting $9 billion in total financing. In fiscal year 2024, I am pleased to report that our guarantees this year are the World Bank Group issued $10.3 billion in guarantees— expected to have significant impacts across various areas: including $8.2 billion from MIGA, $1.4 billion from IFC, and More than 600,000 metric tons of CO2 emissions will be $0.7 billion from the World Bank. These impressive numbers prevented each year, an estimated 280,000 people will reflect the growing desire to invest in and support sustainable receive new or improved electricity services, 2.2 million infrastructure in developing countries. people will have access to mobile internet, 12.2 million new subscribers will begin using mobile money services, and Of the 40 projects we supported: $657.8 million in tax revenue will be generated annually. 95 percent fall into at least one of our strategic priority MIGA’s FY24–26 strategy aims to deepen our commitment areas: poor and fragile countries, gender, in critical areas: Increasing engagement in IDA and FCS and climate projects. countries and increasing support for projects that address climate change and advance gender equality. 65 percent are in IDA-eligible (lower-income) countries ($3.1 billion of gross issuance). IDA AND FCS 25 percent are in fragile and conflict-affected situations ($945 million of gross issuance). IDA (low-income) and FCS countries are still struggling to recover from the COVID-19 pandemic and subsequent global 75 percent contribute to climate finance shocks. MIGA guarantees to IDA-eligible countries during ($2.5 billion of gross issuance). FY24 totaled $3.1 billion, 75 percent higher than in FY23, across 26 projects in 15 countries in Africa and the Europe Regionally, we issued guarantees totaling $2.9 billion and Central Asia regions. in Europe and Central Asia, $2.7 billion in Sub-Saharan MIGA ANNUAL REPORT 2024 7 MESSAGE FROM HIROSHI MATANO We provided $945 million in guarantees in FCS, across GENDER 10 projects in the Democratic Republic of Congo, Kosovo, Mozambique, Nigeria, and Ukraine, and a regional In FY24, MIGA, together with the World Bank and IFC, development bank in Africa. launched the World Bank Group Gender Strategy 2024–2030 to accelerate gender equality and end poverty on a livable Despite persistent conflicts and a challenging political planet. Increasing evidence demonstrates that eliminating and economic environment, MIGA guarantees enabled gender barriers boosts economic productivity, reduces investments in renewable energy in the Democratic Republic poverty, strengthens social cohesion, and improves well- of Congo, the largest country in Sub-Saharan Africa by area. being and prosperity for both present and future generations. Our guarantee will support 28,000 households in the eastern MIGA has been working with its clients to foreground gender part of the country to gain access to affordable and reliable equality and access concerns into our projects. In FY24, this electricity. Once completed, this will be the largest mini-grid effort continued with development of Gender Action Plans. on the continent. These were all in IDA and/or FCS countries, where the issues of inequality are often most pressing. Similarly, we continued to lend our support to Ukraine, helping it keep its economy afloat during the ongoing Russian invasion. Since MIGA established the Support for WORLD BANK GROUP GUARANTEE Ukraine’s Reconstruction and Economy (SURE) Trust Fund PLATFORM in FY23, we have provided more than $217 million in political risk insurance in Ukraine. MIGA-supported projects create jobs and generate the much-needed tax revenue to the In FY24, we announced the World Bank Group Guarantee government. Platform to be operational as of July 1, 2024. Through the platform, the Bank Group seeks to mobilize private capital for development by boosting annual guarantee issuance to $20 CLIMATE CHANGE billion by 2030. Climate change is a major threat to the ambition of The platform brings together guarantee products from developing countries for sustainable growth and economic the World Bank, IFC, and MIGA to streamline and simplify prosperity. MIGA issued $2.5 billion in guarantees for 30 processes for our clients. MIGA houses the platform. As the projects across 22 countries focused on climate mitigation or platform operationalizes, we are creating a simple, accessible adaptation. product menu and streamlined processes. FY24 marked the first year of MIGA implementing its This change is the most significant for MIGA in 15 years, commitment to align 85 percent of its operations with the aligning with our goals to create a faster, better Bank Group goals of the Paris Agreement starting on July 1, 2023, and and address the substantial sustainable infrastructure needs 100 percent from July 1, 2025. This target was surpassed of developing countries. with 100 percent of operations assessed as aligned with the goals of the Paris Agreement in FY24. Lastly, I extend my heartfelt thanks to our private sector and public sector clients and Board, who remain steadfast As an example, our guarantee will help Chile’s largest state- partners and continue to help us deliver results in every part owned enterprise decarbonize its electricity supply by of the world. We are committed to building a faster and transitioning from coal and other fossil fuels to renewable quicker MIGA and World Bank Group to better support our sources. This will also contribute toward the country’s member countries. sustainability goals to become carbon-neutral by 2050 by contributing to the diversification and greening of the HIROSHI MATANO country’s energy sector. Our engagement demonstrates the Executive Vice President World Bank Group’s role in larger economies to help tackle global greenhouse gas emissions. MIGA ANNUAL REPORT 2024 8 MESSAGE FROM HIROSHI MATANO DESPITE PERSISTENT CONFLICTS AND A CHALLENGING POLITICAL AND ECONOMIC EN­VIRONMENT, MIGA GUARANTEES ENABLED INVESTMENTS IN RENEWABLE ENERGY IN THE DEMOCRATIC REPUBLIC OF CONGO. MIGA ANNUAL REPORT 2024 9 BECOMING A BETTER BANK The world is confronting a set of intertwined challenges—poverty, the climate crisis, debt, food insecurity, pandemics, and fragility—and a need to accelerate access to clean air, energy, and water. Time is of the essence. We need a better Bank to address these challenges and the challenges of tomorrow. The G20 Leaders requested the World Bank Group to change and be a more significant part of the solution. In response, we raised our ambition for speed, simplicity, better leveraging our balance sheet, and engaging partners and the private sector. Here’s how we are enhancing our approach: Private Sector Investment Lab The Private Sector Investment Lab is a collaborative initiative between the World Bank Group and directors of Financial Innovations leading global private sector institutions. Our new financial instruments are Its goal is to develop solutions that designed to boost lending capacity and address existing barriers to private enable the World Bank Group to take on sector investment in emerging markets more risk for shared global challenges. and developing economies. The Lab’s We’ve squeezed $40 billion over 10 years core group of 15 CEOs and Chairs from our balance sheet by adjusting our have delivered recommendations on loan-to-equity ratio. We’ve launched a regulatory certainty, increased use hybrid-capital instrument. Our Livable of guarantees, foreign-exchange- Planet Fund, launched in April 2024, risk mitigation, and increased use of offers governments, philanthropies, originate-to-distribute models for and other partners an opportunity to mobilization of private capital. Their contribute to our concessional resources feedback has already informed the for middle-income countries. development of the World Bank Group Guarantee Platform. MIGA ANNUAL REPORT 2024 10 BECOMING A BETTER BANK Global Emerging Markets Risk Database (GEMs) Consortium The GEMs Consortium comprises World Bank Group 25 multilateral development banks Guarantee Platform and development finance institutions. This new platform is delivering The World Bank Group and the GEMs simplicity and improved access to our Consortium are driving transparency guarantee products, putting us on a and mobilizing private investment in emerging markets by releasing Knowledge Bank path to boost our annual guarantee comprehensive credit risk data. Knowledge has been critical to the issuance to $20 billion by 2030—and World Bank Group for 80 years, and multiply our mobilization of private we are refocusing ourselves not just capital many times. as a funding mechanism, but also as a source of knowledge. To do this, we are bringing experts to the forefront of our country-driven model, working with governments to craft focused development plans that marry their ambition and our expertise. The Knowledge Compact for Action details this approach, with a focus on four areas: new and updated knowledge products, strategic partnerships, enhanced learning, Crisis Preparedness and cutting-edge systems. World Bank and Response Toolkit Group Scorecard The World Bank Group is rolling out Accountability and focus underpin an expanded Crisis Preparedness and all our work. Our new Scorecard is Response Toolkit to help developing a yardstick of accountability and a countries better respond to crises and cornerstone of our efforts for greater build resilience against future shocks. efficiency, impact, and results. This tool Climate Resilient Debt Clauses allow allows our shareholders and taxpayers small states to prioritize disaster to clearly see the impact we are recovery over debt repayment when making, rewarding their trust. catastrophes hit. MIGA ANNUAL REPORT 2024 11 WORLD BANK GROUP INSTITUTIONS The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development. MIGA IDA Multilateral Investment International Development Guarantee Agency Association Provides guarantees against Provides concessional grants and non-commercial risks to facilitate loans to the governments of the the flow of foreign investment in world’s 75 poorest countries. developing countries. IFC IBRD ICSID International Finance International Bank for International Centre for Corporation Reconstruction and Settlement of Investment Provides loans, guarantees, Development Disputes equity, advisory services, project Provides financial products and Provides international facilities development services, and policy advice to help countries for conciliation, mediation, mobilizes additional capital from reduce poverty and extend the and arbitration of investment other sources to grow private benefits of sustainable growth to disputes. sector investment in developing all their people. countries. MIGA ANNUAL REPORT 2024 12 WORLD BANK GROUP FINANCING FOR PARTNER COUNTRIES Table 1: World Bank Group Commitments, Disbursements, and Gross Issuance By fiscal year (US$, millions) 2020 2021 2022 2023 2024 WORLD BANK GROUP Commitmentsa 83,547 98,830 104,370 128,341 117,492 Disbursementsb 54,367 60,596 67,041 91,391 89,000 IBRD Commitmentsc 27,976 30,523 33,072 38,572 37,568 Disbursements 20,238 23,691 28,168 25,504 33,450 IDA Commitmentsc,d 30,365 36,028 37,727 34,245 31,195 Disbursementsd 21,179 22,921 21,214 27,718 28,247 IFC Commitmentse 17,604 20,669 22,229 27,704 31,654 Disbursements 10,518 11,438 13,198 18,689 19,147 MIGA Commitments 3,961 5,199 4,935 6,446 8,204 RECIPIENT-EXECUTED DISBURSING ACCOUNT Commitments 3,641 6,411 6,407 21,374 8,871 Disbursements 2,433 2,546 4,461 19,480 8,156 a.  Includes IBRD, IDA, IFC, Recipient-Executed Disbursing Amounts are net of full terminations and cancellations relating to c.  Activities (REDA) commitments, and MIGA gross issuance. commitments approved in the same fiscal year. REDA commitments include all recipient-executed grants; hence, total World Bank Group commitments differ from the Commitments and disbursements exclude IDA-IFC-MIGA Private d.  amount reported in the Scorecard, which includes only a subset Sector Window activities. of trust-funded activities. REDA Commitments reported are Includes long-term commitments for IFC’s own account and e.  Gross Grant Approved amounts. short-term finance commitments. Does not include funds mobilized b. Includes IBRD, IDA, IFC, and REDA disbursements. from other investors. MIGA ANNUAL REPORT 2024 13 MIGA ANNUAL REPORT 2024 14 GLOBAL COMMITMENTS In fiscal 2024, the World Bank Group provided much-needed financing, conducted research and analysis, and partnered with governments, the private sector, and other institutions to address global development challenges. $117.5 BILLION IN LOANS, GRANTS, EQUITY INVESTMENTS, AND GUARANTEES TO PARTNER COUNTRIES AND PRIVATE EUROPE AND CENTRAL ASIA BUSINESSES. Total includes multiregional and global $24.7B operations. Regional totals reflect IFC GLOBAL commitments that were recalculated to match the World Bank’s regional classifications by aggregating country- level commitments within each World $0.4B MIDDLE EAST AND NORTH AFRICA Bank region. $6.5B SOUTH ASIA LATIN AMERICA AND $15.9B THE CARIBBEAN $19.4B EAST ASIA AND PACIFIC SUB-SAHARAN AFRICA $12.5B $38.0B MIGA ANNUAL REPORT 2024 15 MIGA ANNUAL REPORT MIGA ANNUAL REPORT 2024 16 MIGA’S GLOBAL REACH AND COUNTRY RESULTS FY24 Gross Issuance $8.2B MIGA ANNUAL REPORT 2024 17 DEVELOPMENT IMPACT RESULTS FOR SELECTED COUNTRIES* *Figures reflect projects signed in FY15–24 GUINEA SERBIA ARAB REP. OF EGYPT $251M $1.7B 3,798 GWh/yr Locally procured Total loans Expanded power goods supported generation COLOMBIA CAMEROON SOUTH AFRICA NEPAL $2.2B 1.04M tCO e/yr 2 $1.4B $9M Total loans GHG emissions Taxes and fees People provided with supported avoided new or improved electricity services $1.9B $2.9B $449M $2.7B $382M Latin America and Europe and South Asia Sub-Saharan Africa Global/Other the Caribbean Central Asia MIGA ANNUAL REPORT 2024 18 MIGA’S EXPECTED DEVELOPMENT IMPACT from Projects Signed in FY24 MIGA ANNUAL REPORT 2024 19 12.2M NEW SUBSCRIBERS TO MOBILE MONEY SERVICES $218.6M LOCALLY PROCURED GOODS PER YEAR $657.8M TAXES AND FEES PAID PER YEAR TO HOST GOVERNMENTS 2.2M NEW SUBSCRIBERS TO MOBILE DATA SERVICES 647,000 GHG EMISSIONS AVOIDED tCO2e/yr $4.8B VOLUME OF LOANS SUPPORTED $9B TOTAL ACTIVITY FINANCING SUPPORTED (PUBLIC AND PRIVATE SOURCES) NEW WORLD BANK GROUP GUARANTEE PLATFORM TO DELIVER EFFICIENCY AND BOOST IMPACT The World Bank’s most recent Global Economic Prospects As part of the effort to address the need for increased report shows that while the global economy is expected to private capital mobilization, the Bank Group announced that stabilize for the first time in three years in 2024, one in four beginning on July 1, 2024, a major overhaul of its guarantee developing economies is expected to be poorer than it was on business would deliver simplicity, improved access, and faster the eve of the COVID-19 pandemic in 2019. This proportion execution through a new, convenient marketplace—World is twice as high for countries in fragile- and conflict- Bank Group Guarantees. affected situations. Furthermore, per capita income in these economies is expected to grow by 3.0 percent on average These loan and investment guarantees can be powerful through 2026, well below the average of 3.8 percent in the catalysts to attract private sector investments and decade before the pandemic. These challenges have made it commercial financing, fueling economic growth and improved increasingly difficult for these countries to attract the private public services in developing countries. The guarantee capital they need to lay the foundation for accelerated products are housed at MIGA, making it easier for clients to economic growth. do business with the Bank Group, which will help achieve the goal of boosting annual guarantee issuance to $20 billion by Bilateral donors and multilateral development banks alone 2030. don’t have the resources to address these challenges. It’s critical to mobilize private capital to join this effort. The Bank Group offers some 20 guarantee solutions spread across the institution. Each comes with different Last year, the World Bank Group launched the Private Sector processes, rules, and standards. Ultimately, this holds back Investment Lab, a collaborative initiative between the Bank their potential and impedes client access. By harmonizing Group and chief executive officers of leading global private guarantee products into one simplified menu, the platform sector institutions to develop specific approaches that can provides for a more user-friendly experience, thus driving be implemented and scaled by the World Bank to mobilize more private sector capital into developing economies to private capital more effectively. In addition, the collaboration create impact. identifies barriers and potential solutions to private sector investment in emerging markets and provides specific guidance on pain points in using guarantee instruments. MIGA ANNUAL REPORT 2024 21 The overhauled approach consists of six concrete updates: GREATER ACCESSIBILITY Investing in a more accessible client experience by growing CONDENSED STRUCTURE our guarantee teams and training staff worldwide, Moving guarantee experts from across the World Bank providing private sector and country clients with easy Group under one roof, providing a seamless experience for access to guarantees from anywhere in the world clients and easier access to the full suite of guarantees SCALE SIMPLIFIED AND COMPREHENSIVE PRODUCT MENU Applying a risk-weighted approach that focuses resources Compiling all World Bank Group guarantees in a single on high-impact projects and portfolios of projects, reducing menu, allowing clients to easily identify and select the duplicative risk analysis and freeing up capacity to tackle guarantee instrument that best suits their individual needs more complex challenges STREAMLINED PROCESS INNOVATIVE NEW TOOLS Launching a common approach for guarantee reviews Offering guarantee products that will enable the private and removing redundant processes, giving transparency sector to get more involved in solving the development and certainty to our clients across our guarantee process, challenges of today delivering an improved client experience MIGA ANNUAL REPORT 2024 22 HIGHLIGHTED PROJECTS A Closer Look at MIGA Projects in FY24 MIGA ANNUAL REPORT 2024 23 DEMOCRATIC REPUBLIC OF CONGO INCREASING ACCESS TO SUSTAINABLE ENERGY With an electrification rate of just 19 percent, the Democratic Republic of Congo has the second-highest number of people without access to electricity globally (approximately 77 million). This lack of access affects both households and businesses, resulting in expensive, unreliable, unsustainable, or no access to electricity. With the assistance of MIGA guarantees, the development, construction, and operation of solar hybrid mini-grid projects in the country through Nuru INDIA SASU will enable up to 15 MW of renewable energy capacity. Once completed, the project will provide more affordable and reliable electricity to around 28,000 households and EXPANDING RAILWAYS businesses. AND INCREASING Investing in mini-grids through this project aligns well with the World Bank DARES initiative, which aims to accelerate CONNECTIVITY the pace of electrification in Africa to achieve universal access by 2030. The Democratic Republic of Congo is one India’s railway is the fourth-largest network in the world. of the initial focus countries. Private sector–led mini-grids Freight transport is critical to India’s growing economy, and are central to the country’s strategy to accelerate access rail provides the most cost-effective mode of freight and to electricity to meet its access target of 30 percent by public transport. India’s National Rail Plan Vision 2030 seeks 2024. The project provides a green and reliable source of to develop dedicated freight corridors to increase and sustain electricity in areas that are either not served or underserved the modal share of railways to 45 percent of freight traffic. by the national utility and will reduce greenhouse gas (GHG) emissions by over 9,000 tons of CO2 per year. The project The country’s first major guarantee from MIGA will enable also contributes to the World Bank Group and African the completion of the Eastern Dedicated Freight Corridor—a Development Bank’s target to provide 300 million people with 794-kilometer-long railway—and the “last mile” of connectivity electrification across Africa and achieve universal access by between the freight corridor and logistics terminals. With 2030. state-of-the-art technology, including high-quality wagons and higher speed capabilities, longer trains will carry larger MIGA provided the guarantee to Congo Energy Solutions freight loads, powered by electricity through an overhead Limited (CESL), mobilizing the support of the IDA Private wiring cable. In addition, traffic management and supervision Sector Window and MIGA’s Renewable Energy Catalyst Trust will be centralized to monitor real-time information of trains, Fund for the guarantee. IFC’s financing package, committed power systems, and signaling, reducing congestion and in July 2023, also included a subordinated quasi-equity benefiting passengers. Notably, the MIGA-supported project investment through the Finland-IFC Blended Finance for will provide DFCCIL, a state-owned enterprise, access to Climate Program. The International Solar Alliance (ISA), which private commercial financing and international markets, when established a partnership with MIGA in FY24, provided grant traditionally, it has accessed World Bank loans. It is a historic support to the project. The project showcases the One World first for MIGA in India. Bank Group approach, where MIGA, IFC, and the World Bank work together to innovate and leverage partnerships to make By providing better quality and reliability of freight services an investment happen. across the geographical regions connected by the corridor, this project will lead to a net reduction of 1.02 million tons of GHG emissions as well as the enhancement of domestic supply chains and regional connectivity It will also encourage the development of new businesses and industries along the corridor. MIGA ANNUAL REPORT 2024 24 UKRAINE SUPPORTING RECONSTRUCTION EFFORTS Ukraine continues to suffer from both economic and humanitarian disasters resulting from Russia’s invasion, contributing to significant adverse impacts on its development agenda. In line with MIGA’s Ukraine response strategy, the institution continued to support Ukraine in FY24 by providing guarantees, helping where possible to reduce disruption to private sector operations and investments for the country’s recovery and reconstruction. These guarantees mobilized foreign direct investment (FDI) into Ukraine by providing political risk insurance for investment projects, increased access to credit for Ukrainians by offering capital relief to Ukrainian subsidiaries of foreign banks, and facilitated imports of critical goods into Ukraine by supporting trade finance. Notably, these MIGA guarantees can support countries even during active conflict. For example, MIGA provided urgent support for the M10 Industrial Park project in western Ukraine and will aid in the construction and operation of a warehouse facility and supporting infrastructure. The new industrial and logistics warehouse space is essential for sustained economic activities both now and during the reconstruction period. This project will help support Ukraine’s economic growth during the challenging period by creating new jobs, generating tax revenue, and providing an alternative for displaced firms to continue their operations. The Support for Ukraine’s Reconstruction and Economy (SURE) Trust Fund, established in FY23, enabled the M10 guarantee coverage in Ukraine. Of the $9.1 million guarantee, SURE contributed $4 million to support the project. The M10 project aligns with two of MIGA’s strategic priorities: supporting private sector–led projects in fragile and conflict- affected situations and climate finance, with the facility obtaining an international green building certification for its environmental sustainability and energy efficiency. MIGA ANNUAL REPORT 2024 25 MEXICO MOBILIZING CAPITAL FOR SUSTAINABLE FINANCE Mexico is the 14th-largest economy in the world by gross domestic product (GDP). However, in 2022, domestic credit to the private sector was reported at 35.6 percent of GDP, compared with 57.1 percent in Latin America and the Caribbean. To support expanding Mexico’s sustainable projects and goal for a greener economy, MIGA provided a $1.85 billion guarantee to HSBC Holdings plc of the United Kingdom (HSBC) to be used toward eligible climate finance subprojects through its subsidiary HSBC Mexico. In MIGA’s CÔTE D’IVOIRE largest transaction to date, the guarantee will complement HSBC’s overall Net Zero strategy by supporting its climate finance investments. These investments are expected to STRENGTHENING TRADE FINANCE cover a broad range of sectors, including renewable energy, energy efficiency, clean transportation, and sustainable agriculture. Despite being the largest economy in the West African MIGA’s capital optimization guarantees provide much-needed Economic and Monetary Union, Côte d’Ivoire continues to regulatory relief for emerging economies. By expanding struggle with both the lingering economic impact caused by lending capacity, key sectors of the Mexican economy can the COVID-19 pandemic and the current global inflationary transition to a more sustainable future, as well as help environment. As the world’s top exporter of cacao and raw facilitate the growth of HSBC Mexico’s operations. cashew nuts and a net exporter of oil, with a significant manufacturing sector, the country needs short-term liquidity, working capital, and trade finance facilities to support the government’s critical developmental needs and meet its development goals. To help enhance Côte d’Ivoire’s economic resilience, MIGA provided a guarantee that covers a trade loan facility to the country for trade-related payments to suppliers of critical imports in key sectors of the economy, such as health care, infrastructure, and agriculture. The guarantee from MIGA also helps ensure that Côte d’Ivoire’s five-year national development plan continues to meet its goals. With an investment of $100 billion through 2025, the government intends to accelerate the structural transformation of the country’s economy and enhance access to education, drinking water, electricity, health care, social protection, and employment for its population. The government has also designated the development of the private sector as a top priority, to transform it into a driver of the Ivorian economy. MIGA ANNUAL REPORT 2024 26 BUSINESS AND OPERATIONAL BUSINESS AND OPERATIONAL REVIEW GUARANTEE As global growth stabilized at a rate insufficient for progress on key development goals, threatening economic PORTFOLIO development, MIGA delivered a program of $8.2 billion in new guarantees in FY24. This year, of the 40 projects supported by the institution, 95 percent addressed at least one of EXPOSURE the strategic priority areas, namely, IDA-eligible and FCS countries and climate finance. As of June 30, 2024, MIGA’s gross guarantee exposure stood at $31.5 billion and net guarantee exposure at $10.3 billion. 31.5 Gross Guarantee Portfolio Exposure ($B) Net Guarantee Portfolio Exposure ($B) 27.9 24.4 22.6 23.0 10.3 9.2 9.1 9.5 9.0 FY20 FY21 FY22 FY23 FY24 MIGA ANNUAL REPORT 2024 28 PRIORITY AREAS MIGA ANNUAL REPORT 2024 29 STRATEGIC PRIORITY AREAS In its FY24–26 strategy, MIGA set out a goal to continue to deepen its commitment across critical areas: INCREASING ENGAGEMENT IN IDA COUNTRIES AND FRAGILE AND CONFLICT-AFFECTED SITUATIONS (FCS) INCREASING SUPPORT FOR PROJECTS THAT ADDRESS CLIMATE CHANGE INCREASING CLIENT ENGAGEMENT TO ADVANCE GENDER EQUALITY MIGA ANNUAL REPORT 2024 30 IDA AND FCS In FY24, MIGA began implementing its commitment to align 85 percent of its Board-approved operations with the Paris IDA (low-income) countries and FCS continue to feel the effects Agreement starting on July 1, 2023, and 100 percent from July of the COVID-19 pandemic and subsequent global shocks, 1, 2025. That goal was surpassed: By the end of FY24, 100 reversing hard-won advancements in poverty reduction and percent of new operations were assessed as aligned with the development. By the end of 2024, one in four developing objectives of the Paris Agreement. economies is expected to be poorer than it was on the eve of the pandemic. By 2026, many of these countries will still MIGA is committed to promoting projects that are be growing more slowly, on average, than they were in the economically, environmentally, and socially sustainable and decade before the pandemic. Per capita income growth in these that promise a strong development impact. economies is expected to average just 3 percent through 2026, well below the average of 3.8 percent in the decade before COVID-19. GENDER MIGA’s commitment to IDA-eligible countries during FY24 was substantial, with guarantees totaling $3.1 billion, representing Gender equality is an urgent imperative. Crises, conflicts, 38 percent of the total guarantee issuance. Commitments in and global challenges such as climate change, pandemics, IDA-eligible countries supported 26 projects (65 percent of natural resource scarcity, and technological transitions total projects supported) across 15 nations in Africa and the exacerbate inequalities between men, women, boys, and girls. Europe and Central Asia regions. The World Bank Group and MIGA recognize gender as a core priority area. The new World Bank Group Gender Strategy MIGA’s engagement in FCS was also notable, with $945 2024–2030, launched in FY24, focuses on concerted action, million in guarantees supporting 10 projects, representing 25 financing, and programs at scale to support foundational percent of the total projects supported, in five countries (the well-being, economic participation, and women’s leadership. Democratic Republic of Congo, Kosovo, Mozambique, Nigeria, and Ukraine) and one regional development bank in Africa. Gender equality is embedded in our strategy and in our client engagement. Moreover, our clients are increasingly requesting we support them on their gender journey. In FY24, all gender- flagged projects were in IDA (low-income) countries in Sub- CLIMATE CHANGE Saharan Africa, some of which were also located in Fragile and Conflict-affected Situations (FCS) countries. Climate finance initiatives were a significant focus in FY24, with MIGA issuing guarantees for 30 projects (75 percent For example, a MIGA client in Guinea will address gender of total projects) across 22 countries, supporting either challenges in employment, digital access, and digital mitigation or adaptation efforts. The climate finance literacy. The actions include increasing the number of component of the FY24 guarantees totaled $2.5 billion, women employed in technical and digital roles, increasing representing 38 percent of total guaranteed investment women’s representation at the senior management level, supported. and promoting women’s and underserved groups’ access to technology skills as well as telecom and mobile money Notable climate projects this year included one that provides services. Senegal with its first 100 percent electric bus rapid transit (BRT) system and supporting a loan facility that addresses MIGA’s gender ambition remains focused on impact through climate mitigation finance and climate adaptation projects in our clients. We recognize that we have an opportunity, and a Botswana. responsibility, to mobilize capital to advance gender equality. MIGA’s products have helped cross-border investors protect their long-term investments in climate mitigation and adaptation activities across diverse markets and regions. As one of the few institutions that provides long-tenor guarantees, MIGA will be instrumental in helping investors identify and address climate challenges and in fostering the lock-in of transformational climate action. MIGA ANNUAL REPORT 2024 31 INNOVATION Innovation makes it possible for MIGA to do more with its products, broaden its development impact, and evolve alongside dynamic investment markets in developing economies. While keeping a finger on the pulse of these markets, MIGA has cultivated innovations that will help deliver the best possible development outcomes for countries and help clients further their investment potential.  REGULATORY RELIEF MIGA’s FY21–23 Strategic Business Outlook, which emphasize leadership in climate change and market creation through the Cascade approach. The project will MIGA continues to use its capital optimization product to help HSBC Mexico scale up its sustainable finance loan provide regulatory relief to banks. Delivery of this product portfolio. allows banks to maintain lending during challenging economic times. In addition, MIGA made significant progress in using its Another major innovation of this transaction was the capital optimization product to scale up climate finance by its introduction of a “targeted asset class” regulatory relief client financial institutions, and it plans to further expand this approach for capital optimization. Unlike traditional approach. The institution is also looking into whether a similar practices, this approach focused MIGA’s guarantees product can be tailored for the needs of institutional investors on specific sectors with substantial financing gaps and insurance companies. or priority areas, such as climate finance. In this transaction, the regulatory relief obtained through In FY24, MIGA provided its largest guarantee to date to MIGA’s guarantee to HSBC was directed exclusively Mexico. The $1.85 billion guarantee to HSBC Holdings plc of to HSBC Mexico for financing eligible climate finance the United Kingdom (HSBC) will provide regulatory capital subprojects in Mexico. HSBC intends to transfer the relief for its subsidiary in Mexico and support the financing benefits of the freed-up capital to HSBC Mexico, which of climate-related projects in Mexico. This was the first will deploy it for financing a specific asset class rather time MIGA provided coverage for noncash reserves. Mexican than the entire portfolio as has been the usual practice. regulations permit banks to hold reserves in the form of In some cases, this approach can have the benefit of securities or other noncash assets. In this case, the reserves focusing the impact of MIGA’s guarantees on areas primarily consisted of Monetary Regulation Bonds (BREMS). with large financing gaps and/or priority areas such as These bonds are pivotal in aiding the Central Bank of Mexico climate, gender, or SMEs. This novel method has set a to manage the money supply and stabilize the financial precedent for underwriting future transactions. system. The project is closely aligned with HSBC Mexico’s sustainability agenda by specifically targeting climate Access to credit in the Balkan countries has historically finance. It also supports the World Bank Group’s Country been low despite ample liquidity and has been Partnership Framework (CPF) 2020–2025 for Mexico and hindered by regulatory constraints and adverse risk MIGA ANNUAL REPORT 2024 32 appetites from parent banks. This fiscal year, MIGA issued The project includes a clean cooking program, which enrolls three guarantees totaling €770 million to Raiffeisen Bank influential women leaders as ambassadors to facilitate International AG (RBI) of Austria for its equity investments the adoption of the electric cooking technology among in its subsidiaries in Serbia, Bosnia and Herzegovina, and other women in the community. By matching the end- Kosovo. These guarantees enable their subsidiaries to user electricity tariffs with the national grid tariffs, village generate loan capacity in the host countries by a total of households will be able to access a more sustainable and around €900 million, of which 13 percent is expected to be affordable energy source. This approach is significantly deployed toward climate finance–related projects and 27 cheaper than tariffs under a captive mini-grid system with percent toward SMEs. The MIGA guarantees will free up new battery storage units. capacity for loan growth of up to €596 million in Serbia, €175.8 million in Bosnia and Herzegovina, and €146.8 million Rwanda has ambitious plans for universal energy access, in Kosovo. RBI Serbia, RBI Bosnia and Herzegovina, and RBI aiming to provide electricity to 100 percent of the population Kosovo are expected to deploy 12 percent, 6 percent, and 42 by the end of 2024, and with the help of MIGA guarantees this percent of the guarantee amount toward climate finance, innovative hybrid model provides a clean and efficient solution respectively, and 27 percent, 6 percent, and 100 percent, in meeting that goal. respectively, toward SMEs. CUTTING-EDGE FINANCE APPLICATION TO NEW TECHNOLOGIES In an innovative approach, recommended by the Private Sector Investment Lab, a project to support India in achieving To support technology-driven sustainable and affordable its climate targets by transitioning to affordable solar power energy sources, MIGA provided guarantees of $9 million to showcased an “originate to refinance” model leveraging Oikocredit, Ecumenical Development Cooperative Society different parts of the World Bank Group. MIGA issued a U.A., Triodos Groenfonds and Triodos Emerging Markets guarantee of $317.5 million to Citi, Crédit Agricole Corporate Renewable Energy Fund for their investments in ARC Power and Investment Bank (Crédit Agricole CIB), and Standard Rwanda Ltd., a subsidiary of ARC Power Ltd., UK. The project Chartered Bank for their loan to the State Bank of India (SBI), will be Rwanda’s first interconnected grid network, with solar one of India’s premier state-owned banks. generation units installed within village networks. Each unit will directly serve 25 to 30 users, including schools, health This collaboration between MIGA and SBI refinanced $200 centers, local government offices, SMEs, commercial centers, million of an existing $500 million loan provided by the World business parks, and households within the villages. Bank to SBI in 2016 for operational grid-connected rooftop solar photovoltaic (GRPV) systems. These photovoltaic The new grid network will connect approximately 30,000 installations provide clean energy and reduce GHG emissions new customers living in 150 villages to the Rwandan national by displacing more expensive and carbon-intensive thermal grid for the first time, benefiting around 118,000 people. generation. The IBRD loan funds a national program to deliver MIGA ANNUAL REPORT 2024 33 the GRPV systems to commercial and industrial customers Also in FY24, MIGA successfully executed a complex across India. transaction to provide more power to the people of the Democratic Republic of Congo. MIGA provided a guarantee The World Bank supported SBI in a nascent sector, and MIGA of $50.3 million to Congo Energy Solutions Limited (CESL), subsequently brought in commercial financing once the World which plans to expand its operations across the Democratic Bank loan operation had helped the project reach a certain Republic of Congo to provide energy to up to 5 million people level of maturity. This project responds to calls from the G-20 by 2025. MIGA mobilized the support of the IDA Private and others for multilateral development banks (MDBs) and Sector Window and MIGA’s Renewable Energy Catalyst Trust MIGA to collaborate on transferring portfolio risk from MDB Fund for the guarantee. IFC’s financing package, committed balance sheets to the private sector using MIGA’s insurance in July 2023, also included a subordinated quasi-equity products and reinsurance capacity. This collaboration is one investment through the Finland-IFC Blended Finance for of the first examples of MIGA and the World Bank working in Climate Program. concert to free up lending capacity for the Bank. The World Bank program enabled SBI to partner with MIGA, attracting international commercial lenders and private finance directly to the GRPV program. This financing paves the way for mobilizing private investment in energy solutions for India. This fiscal year, MIGA issued its first trade finance guarantee against losses resulting from the failure of a sovereign to make payments related to trade finance transactions. This innovative guarantee to Rand Merchant Bank Division covers a trade loan facility of up to €95 million. The bank will be protected against the risk of nonpayment by the government of Côte d’Ivoire for one year. The short-term revolving loan facility will help enhance Côte d’Ivoire’s resilience in dealing with the lingering strains caused by the COVID-19 pandemic and the current global inflationary environment. The combined impact of the two has created a need for short- term liquidity, working capital, and trade finance facilities to support the Ivorian government’s critical developmental needs. With the MIGA-supported facility, Côte d’Ivoire will be able to continue executing its strategic plan to meet development goals in a challenging global setting. MIGA ANNUAL REPORT 2024 34 REINSURANCE Since 1997, MIGA has employed reinsurance as a tool to use its capital efficiently and manage the risk profile of its portfolio. The primary benefits of reinsurance accrue to MIGA’s clients—first, to the investors, who gain access to increased capacity to insure eligible projects in developing countries; and second, to countries that benefit from larger amounts of foreign direct investment (FDI). MIGA continues to make use of the reinsurance market, ceding $5.5 billion of new business to its reinsurance partners during FY24 in line with the strategy of preserving capital to support growth. As of June 30, 2024, $20.7 billion, or 66 percent, of the outstanding gross portfolio was reinsured, up from 65 percent as end of FY23. Portfolio Reinsurance ($B) and Rate (%) Board-Approved Limit (70%) 70% 25 65% 66% 60% 62% 58% 59% 20 20.7 50% 18.0 15 40% 15.1 13.2 13.6 30% 10 20% 5 10% 0 0% FY20 FY21 FY22 FY23 FY24 MIGA ANNUAL REPORT 2024 35 LEVERAGING MIGA’S PARTNERSHIPS FOR GREATER DEVELOPMENT IMPACT Expanding collaboration that encourages productive use of political risk insurance is essential for unlocking material private capital, which in turn contributes to achieving the Sustainable Development Goals, boosting shared prosperity, and ending extreme poverty. To this end, MIGA works to enhance coordination with international finance institutions and industry partners and across the World Bank Group. MIGA ANNUAL REPORT 2024 36 instruments and a willingness to collaborate in trade finance transactions, using MIGA’s guarantees for the importation of strategic commodities, including fertilizers, in Africa. As part of MIGA’s outreach to promote more FDI in developing member countries, MIGA is convening stakeholders on a regional basis for candid roundtable conversations, with the view of improving investment conditions and increasing cross-border investments. The in-person roundtables are cohosted with a member country in various regions in Africa, Asia, and the Caribbean. In September 2023, MIGA, in collaboration with IFC and Jordan, hosted the third event in the series: a roundtable in Amman aimed at boosting FDI in Jordan and Iraq. The gathering brought together high-level officials and private executives to discuss project evaluation PARTNERSHIPS WITH processes and ways to create favorable investment INTERNATIONAL FINANCE conditions. INSTITUTIONS MIGA works with international finance institutions (IFIs) and MDBs to leverage guarantees and mobilize private capital for development. In 2018, the G-20 Eminent Persons Group on Global Financial Governance recommended that MIGA apply its position as a global risk insurer in development finance to work with other IFIs. Since then, the institution has taken key steps with other MDBs and IFIs to help realize these recommendations. In September 2023, MIGA and IDB Invest, the private sector arm of the Inter-American Development Bank Group (IDB), announced a historic four-year partnership to mobilize more private sector capital in Latin America and the Caribbean as well as to combine and deploy risk-shifting and financing solutions in the region. The cooperation agreement calls for regular engagement between the two institutions to develop INDUSTRY PARTNERSHIPS a shared pipeline of projects. This will expand the number of bankable projects and deepen the relationship between the Partnering with others in insurance and development finance two institutions and potential private sector investors. The is essential for delivering results on the ground. MIGA’s collaboration is expected to significantly impact the region’s Executive Vice President serves as co-chair of the steering development, recognizing the crucial role of the private committee of the Insurance Development Forum, a public- sector in driving economic growth and reducing poverty. The private partnership that brings together private and public agreement was paired with a memorandum of understanding insurance companies to optimize the use of insurance to build between the World Bank and IDB to boost support for net- greater resilience. MIGA is also a member of the Berne Union zero-deforestation efforts in the Amazon, strengthen the of global export credit and investment insurance providers. Caribbean’s resilience to natural disasters, and bridge the The Berne Union actively facilitates cross-border trade by digital-access gap across Latin America and the Caribbean. supporting international acceptance of sound principles in export credits and foreign investments. During the World Bank Group and International Monetary Fund Annual Meetings in October, MIGA, the Eastern and In July 2023, MIGA signed a memorandum of understanding Southern Africa Trade and Development Bank, and the with the International Solar Alliance (ISA). ISA is a treaty- OCP Group signed a memorandum of understanding that based collaborative platform that allies more than 100 will enhance collaboration in addressing agriculture and signatory countries for increased deployment of solar energy food security challenges in Africa. The agreement aims to technologies as a means for bringing energy access, ensuring identify suitable areas for deploying MIGA’s risk mitigation energy security, and driving energy transition globally. The MIGA ANNUAL REPORT 2024 37 agreement paves the way for MIGA to help ISA deliver its This year, MIGA and IFC signed three-year cooperation three strategic pillars of programmatic support, analytics and agreements with Nippon Export and Investment Insurance advocacy, and capacity building, recognizing that promoting (NEXI), the official export credit agency of Japan, to promote the expansion of renewable energy is a strategic priority for FDI in developing countries. The organizations share expertise MIGA and an area where MIGA has long-standing experience. and resources to identify prospects for joint projects, including conducting joint due diligence missions, marketing In December 2023, MIGA and the International Renewable efforts, and training programs to enhance efficiency, impact, Energy Agency (IRENA) signed a collaborative partnership and speed. agreement to enhance capital mobilization to scale up the implementation of renewable energy and energy transition projects. MIGA is now a partner of the Energy Transition Accelerator Financing (ETAF) platform, a climate finance mechanism managed by IRENA. ETAF facilitates climate finance projects that advance global energy transition in IRENA member countries. In March 2024, MIGA, with the International Law Institute (ILI), delivered capacity-building workshops in Kigali, Rwanda, and Dodoma, Tanzania, focused on political risk insurance in the context of public-private partnerships. Government officials participating in these workshops enhanced their understanding of the insurance and its role in attracting private capital for infrastructure development. In May 2024, MIGA and Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF), the largest non-mutual private insurance company in Japan, signed a cooperation agreement to promote FDI in developing countries. The three-year strategic KNOWLEDGE PARTNERSHIP partnership leverages the expertise of both organizations to catalyze sustainable economic growth and development. The In April 2024, MIGA and the Financial Times partnered agreement facilitates investment by providing guarantees, to launch a new awards program to promote ground- co-insurance, and reinsurance for projects in developing breaking, long-term solutions to development challenges countries. MIGA and TMNF will collaborate to identify and in Africa. The Africa Sustainable Futures Awards recognize support joint projects and combine their respective expertise, innovative and financially viable projects and initiatives that providing comprehensive support for investments. provide transformative solutions to some of the biggest development issues facing the continent. The awards focus In June 2024, at the Ukraine Recovery Conference 2024, on entrepreneurship, innovation, and investment that can MIGA signed a memorandum of understanding with KUKE, provide access to clean energy and digital connectivity and the official export credit agency of Poland, to support and ensure urban infrastructure and natural ecosystems remain encourage trade and FDI by Polish companies in Ukraine resilient to climate change. The program also highlights the and other countries. The agreement provides a framework importance of gender equality and inclusion in boosting for cooperation on projects through joint insurance, parallel development. insurance, and reinsurance arrangements. This agreement reflects Poland’s strong desire to support Ukraine’s reconstruction and MIGA’s strategy of partnering with public sector insurers given the lack of private market insurance for war risks. The cooperation builds on the agreement between the U.S. International Development Finance Corporation (DFC) and MIGA to collaborate on insuring projects in Ukraine. DFC and MIGA have partnered to co-insure a manufacturing project in Ukraine, each entity covering approximately $25 million against political risks, including war and civil disturbance. MIGA ANNUAL REPORT 2024 38 ENVIRONMENTAL AND SOCIAL SUSTAINABILITY AT MIGA MIGA believes that an important component of achieving positive development outcomes is the environmental and social (E&S) sustainability of its projects, which MIGA expects to achieve through the application of the MIGA Policy on Environmental and Social Sustainability and the Equator Principles, a comprehensive set of E&S performance standards widely accepted in the financial sector. ACTIONS TO MIGA HELPS ENSURE E&S INVESTORS RAISE SUSTAINABILITY THE BAR ON E&S INTEGRATION AT OBJECTIVES IN MIGA SEVERAL WAYS Prescreening all projects for E&S impact Ensuring that investments meet vigorous and internationally recognized standards Gathering development effectiveness indicators from clients Working with clients to continually monitor and report on Applying MIGA’s Impact Performance Assessment and E&S impacts Comparison Tool (IMPACT) framework to assess a project’s expected development impact Allowing clients to enter markets they otherwise would not have been able to reach, which can bring high development Ensuring that projects meet the MIGA Performance returns Standards on E&S Sustainability Verifying E&S impact through ex post evaluations Assessing climate risk MIGA ANNUAL REPORT 2024 39 MEASURING AND EVALUATING DEVELOPMENT IMPACT Assessing impact is critical for understanding the reach and results of the projects MIGA supports. From project origination to project close and beyond, MIGA implements several frameworks and tools that monitor and evaluate the development impact of MIGA-guaranteed projects. IMPACT FRAMEWORK DEVELOPMENT EFFECTIVENESS INDICATOR SYSTEM The Impact Measurement and Project Assessment Comparison Tool (IMPACT) assesses expected project-specific The Development Effectiveness Indicator System (DEIS) helps outcomes as well as beyond-the-project effects on foreign measure and track the development impact of MIGA-insured investment. The framework complements MIGA’s broader projects. Through this system, MIGA measures a common results measurement system. IMPACT has the following set of indicators across all projects. It also measures sector- objectives: specific indicators and puts into place a process to measure projects’ development outcomes three years from the time Perform ex ante assessments of development impact for of contract signing. The indicators are the basis of the individual projects. indicators for the new Corporate Scorecard announced by the World Bank Group in FY24. The World Bank Group Scorecard Enable comparative analysis. tracks results across 22 indicators to provide a streamlined, clear picture of progress on all aspects of the World Bank Inform project prioritization based on assessment of Group’s mission. expected development impact. Align with IFC’s Anticipated Impact Measurement and Monitoring (AIMM) framework and coordinate development EVALUATION impact ratings for IFC-MIGA joint projects. Follow an agile approach to integrate IMPACT efficiently with Since FY12, all projects have been evaluated by MIGA and MIGA’s existing guarantee processes. the Bank Group’s Independent Evaluation Group (IEG), an independent evaluation body. The evaluations assess the achievement of the development outcomes of MIGA- supported projects through project evaluation reports. MIGA conducts self-evaluations that are then validated by the IEG. Project evaluations are useful not only for assessing the results but also for generating lessons for future projects. MIGA actively uses evaluation findings in staff learning events. MIGA ANNUAL REPORT 2024 40 INTEGRITY Integrity and reputational risk management are key to MIGA’s role as a development partner. MIGA considers integrity and reputational risk in its clients and projects, subscribing to the World Bank Group’s Anti-Corruption Guidelines, which identify fraud, corruption, collusion, coercion, and obstruction as major impediments to development and as sanctionable practices. MIGA’s Integrity Team conducts due diligence as part of business development and underwriting and monitors projects in the portfolio for potential emerging integrity or reputational risk flags. In this work, MIGA uses on-site evaluations, market soundings, experience with the client, World Bank and IFC local knowledge, and desktop resources, including proprietary databases. In FY24, MIGA continued to share integrity best practices through collaboration with other World Bank Group members and development partners as well as through participation in various integrity-focused forums. MIGA ANNUAL REPORT 2024 41 MIGA’S FY24 CLIMATE- RELATED FINANCIAL DISCLOSURES REPORT This report is MIGA’s fourth disclosure under guidelines recommended by the Taskforce on Climate-Related Financial Disclosures (TCFD), and MIGA is issuing the report as part of the MIGA Sustainability Report and MIGA Annual Report. The report highlights our efforts and demonstrates our commitment to enhancing the Agency’s climate and sustainability-related financial disclosures as we explore alignment with the standards of the International Sustainability Standards Board starting with the FY25 report. It reflects MIGA’s approach and progress toward managing climate change–related risks and opportunities in FY24 (July 1, 2023–June 30, 2024), coinciding with MIGA’s fourth year under the World Bank Group Climate Change Action Plan 2021–2025 (CCAP). MIGA ANNUAL REPORT 2024 42 The World Bank Group continues to be the largest financier The report discloses MIGA’s climate action results and is of climate action among the multilateral development banks organized around four core elements: (MDBs) for low- to middle-income countries. The Bank Group stands at a critical juncture as it undergoes an evolution, underscoring the importance of tackling climate change in realizing its mission to create a world free of poverty on a livable planet. In this context, MIGA is deepening its collaboration with IFC and the World Bank to respond GOVERNANCE to climate and development needs with speed and scale under an enhanced One World Bank Group approach. Its guarantees continue to de-risk and mobilize private capital for transformative interventions in developing countries and emerging markets, including in some of the most fragile and conflict-affected regions. STRATEGY In FY24, MIGA supported projects that focused on expanding access to renewable energy, accelerating the adoption of low-carbon transportation infrastructure, and enhancing climate-resilient infrastructure. MIGA has taken the lead on the Guarantee Platform, which was launched on July 1, 2024. This platform aims to develop new and innovative guarantee products that facilitate increased private sector involvement RISK in tackling critical development challenges and climate- MANAGEMENT related issues. MIGA is also strengthening its partnerships with the broader MDB community, the private sector, and other stakeholders to deliver climate action that has impact, recognizing that there is a rapidly narrowing window for the world to cut emissions and avoid the worst impacts of climate change. METRICS AND TARGETS MIGA ANNUAL REPORT 2024 43 All aspects of MIGA’s climate business and related protocols are overseen by MIGA’s Executive Vice President (EVP), who GOVERNANCE reports to the President of the World Bank Group. MIGA’s Board of Directors are responsible for approving all MIGA operations and policies. Vice President & Chief Finance, Risk, Legal and Sustainability Officer, reporting to MIGA’s EVP, oversees, among other departments, the Economics and Sustainability Department, which houses the Climate Analytics Unit. The Climate Analytics Team is responsible for FY24 HIGHLIGHTS climate finance accounting; Paris Alignment assessments; At COP28, the World Bank Group President announced a new GHG emissions accounting; support of the development climate finance target, committing to direct 45 percent of the of climate-related internal and/or external frameworks, Bank Group’s annual financing to climate-related projects for the policies, and guidance materials on salient climate-related fiscal year that runs from July 1, 2024, to June 30, 2025. thematic areas; development of new MIGA products to foster FY24 marked the first year of MIGA implementing its low-carbon and climate-resilient investments; analysis and commitment to align 85 percent of its new operations with the reporting on MIGA’s climate business; monitoring of MIGA’s goals of the Paris Agreement starting on July 1, 2023, and 100 portfolio of projects to ensure climate action commitments percent from July 1, 2025. This target was surpassed with 100 made at the project approval stage by MIGA’s clients are percent of new operations assessed as aligned with the goals of the Paris Agreement in FY24. A Paris Alignment Committee was being adhered to; contributing to World Bank Group climate convened for complicated projects where assessments entailed analytics and strategic initiatives; and collaboration with extensive technical peer review. MDBs through technical working groups on topics like climate mitigation finance, climate adaptation finance, Paris A new leadership role—head of sustainability reporting— Alignment, Article 6, climate metrics, policy, and country was established with the aim of enhancing MIGA’s focus on sustainability and transparency in reporting practices. support. FY24 ushered in a new budget process that emphasizes synchronized budget planning between MIGA, IFC, and the World Bank as well as several new World Bank Group–wide financial reporting arrangements. These changes are designed to enhance efficiency and amplify the delivery of solutions that address both climate change and broader development goals. MIGA ANNUAL REPORT 2024 44 FY24 HIGHLIGHTS STRATEGY On February 28, 2024, the World Bank Group announced a major overhaul of its guarantee business, focusing on simplifying processes, enhancing accessibility, and improving execution. As of July 1, 2024, all Bank Group guarantee products are housed on the Guarantee Platform, which aims to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030, prioritizing climate action in FCS, developing, and emerging The CCAP aims to integrate climate with development economies. and advance the World Bank Group’s Green, Resilient, and A Knowledge Compact for Action, launched in April 2024, seeks Inclusive Development (GRID) objectives by focusing on to empower all World Bank Group clients—public and private— people, natural capital, and partners. The CCAP reflects by systematically making the latest development knowledge the Bank Group’s ambition to support its public and private available to respond effectively to increasingly complex sector clients to maximize the impact of climate finance, development challenges compounded by climate change. aiming for measurable improvements in climate adaptation Starting on July 1, 2024, the World Bank, IFC, and MIGA will and resilience and reductions in GHG emissions. The CCAP appoint a single World Bank Group country manager or resident objectives include (a) integrating climate and development, representative in select countries to accelerate the development and (b) prioritizing key systems transitions by identifying of integrated solutions for climate and development that spans the largest climate mitigation and adaptation opportunities both the public and private sectors, leveraging the full breadth of Bank Group knowledge and experience to amplify our collective and driving climate finance and leveraging private capital to impact. deliver the maximum results. Climate change is a priority area for MIGA, along with support for low-income (IDA-eligible) MIGA is moving more staff to the field while optimizing the countries and countries facing fragility, conflict, and violence positioning of existing staff to be even more responsive to clients (FCV). MIGA’s climate strategy reflects the ambition of the and partners. It is streamlining operational processes expected to support speed and delivery scale. commitments made in the CCAP and MIGA’s Strategy and Business Outlook FY24–26 to deepen its impact. During MIGA has signed cooperation agreements with several MDBs and FY24, MIGA focused on five strategic areas for its climate partner institutions to scale up the use of political risk insurance business: clean energy, climate-resilient infrastructure, to jointly tackle climate challenges, including with the Inter- green buildings, low-carbon transportation, and greening American Development Bank, African Development Bank, and the International Renewable Energy Agency. financial systems across four regions. Support for these sectors is critical to ensure MIGA’s client countries align their MIGA approved its first transaction that aligns with the G-20 development with low-carbon and climate-resilient pathways. Independent Expert Group’s recommendation that it use To ensure intended development objectives are achieved and originate-to-distribute models to mobilize private finance for gains are sustained, MIGA evaluates the materiality of both alleviating capital constraints at other MDBs. MIGA’s guarantee will cover a non-shareholder loan by the guarantee holders— physical and transition climate-related risks for all sectors Citibank NA, among other banks—to the State Bank of India (SBI) and aims to define appropriate risk mitigation measures against the risk of non-honoring financial obligations by a state- where necessary. owned enterprise (SBI) for $317.5 million with a tenor of 10 years. The MIGA-covered loan will refinance $200 million of an existing $500 million World Bank loan for operational grid-connected rooftop solar photovoltaic panels installed by commercial and industrial consumers nationwide. Other product-related innovations include modifications to MIGA’s existing offerings, such as the provision of partial coverage for expropriation risks, extending the use of capital optimization beyond cash reserves, and issuing trade finance guarantees for trade loans for the first time. These innovations provide additional opportunities for MIGA to support greener and climate-resilient economies. MIGA is developing a template letter of authorization for carbon credits as it prepares to expand its product offerings to support the scale-up of emerging carbon markets, aiming to drive significant reductions in greenhouse gas (GHG) emissions by mobilizing private sector investment in low-carbon projects. MIGA ANNUAL REPORT 2024 45 In assessing the materiality of climate change risks, MIGA works with its clients to evaluate climate risk sources and RISK risk vectors for climate-sensitive sectors. MIGA adopts a MANAGEMENT bottom-up approach, which is location, context, and time specific and focuses on past, present, and future climate- related vulnerabilities. The assessments include both acute hazards (for example, extreme events such as floods, heat waves, fires, and tropical cyclones) and chronic hazards (for example, sea-level rise, changing precipitation and FY24 HIGHLIGHTS temperature patterns, and water scarcity), which are All MIGA operations were screened for physical climate risk evaluated over multiple future time horizons and global using MIGA and World Bank Group climate risk screening tools. warming scenarios. All Paris Alignment assessments incorporated transition and physical climate assessments. For projects where gaps on alignment were identified, MIGA agreed with the client(s) to implement risk mitigation measures to ensure that projects are on a pathway for alignment with the goals of the Paris Agreement, resulting in all operations being assessed as Paris aligned. MIGA has developed internal guidance to estimate its direct and indirect exposure to fossil fuels and report to the MIGA Management Team. MIGA does not provide new guarantees for projects related to upstream oil and gas or for projects that directly finance/support universally non-Paris-aligned activities, which include the mining of thermal coal, electricity from coal, extraction of peat, and electricity from peat. Under the Green Equity approach, MIGA will not provide guarantees to financial intermediaries that will finance new coal-related projects. MIGA requires clients to have a plan to phase out their investments in coal-related activities over an agreed period, but no later than 2030. MIGA ANNUAL REPORT 2024 46 MIGA continues to diversify its climate business and identify new areas for growth to meet the new World Bank Group METRICS AND new climate finance target of delivering 45 percent of finance TARGETS for climate mitigation and adaptation by the end of FY25. In FY24, direct climate finance accounted for 38 percent of MIGA’s total guarantee investments excluding trade finance. By regional breakdown, the largest share of this issuance was provided to Latin America and the Caribbean followed by Sub-Saharan Africa. However, the results indicate that FY24 HIGHLIGHTS MIGA’s climate finance issuance supports low-carbon and The World Bank Group and other MDBs launched the MDB climate-resilient projects across the global regions and Common Approach to Measuring Climate Results as a sectors in which the Bank Group operates. Exposures to the framework for measuring, defining, and linking global progress on climate adaptation and mitigation with MDB results. Cross- various sectors during FY21–24 show that climate financing MDB collaboration is under way on developing common climate through financial intermediaries is the largest sectoral results metrics. exposure, at 54 percent, followed by green buildings at 16 percent with renewable energy projects closely behind at 15 The World Bank Group launched a new Corporate Scorecard percent, and the remainder accounting for adaptation, energy that will capture the impact of its work, such as its support for scaling low-carbon and climate-resilient solutions in client efficiency, and low-carbon transport projects, respectively. countries. Working groups consisting of technical experts from The Bank Group’s new Corporate Scorecard aims to provide Bank Practice Groups, IFC, and MIGA are developing in-depth a comprehensive view of the impacts and effectiveness of methodologies for each Scorecard indicator. MIGA will launch an its climate mitigation and adaptation projects in promoting updated platform for a Results Measurement System to capture low-carbon development and climate resilience. It marks a results indicator data. MIGA monitors and reports progress on climate-related targets, commitments, and indicators tied to its departure from the Bank Group’s input-based approach to operations. simply tracking the flow of financing to climate projects. MIGA has also collaborated with the wider MDB community to standardize the measurement and reporting of climate results through common metrics, enhancing the transparency of climate action and facilitating learning and sharing of best practices across MDBs. MIGA ANNUAL REPORT 2024 47 GENDER INITIATIVES MIGA’s gender initiatives are dedicated to helping clients incorporate gender- focused actions into their operations. MIGA has emphasized partnerships as a strategic way to mobilize collective action in responding to the global urgency, and complexity of achieving gender equality. In June 2024, MIGA, IFC, and the World Bank launched the WBG Gender Strategy 2024–2030. The strategy puts forward the bold ambition to accelerate gender equality to end poverty on a livable planet. It focuses on concerted action, financing, and programs at scale to support foundational well-being, economic participation, and leadership. The strategy involved consultations that spanned 28 countries and engaged representatives of over 600 entities from more than 110 countries. The valuable insights MIGA received from these discussions will help strengthen the implementation of the strategy. MIGA ANNUAL REPORT 2024 48 COLLABORATING WITH CLIENTS MIGA’s gender approach Enhancing women’s employment and digital access to client engagement is and literacy In July 2023, Société Nationale des Télécommunications du focused on collaborating with Sénégal SA (Sonatel SA) agreed on a gender action plan to clients to identify actions increase the number of female employees in technical and digital roles and senior management positions. The plan to advance gender equality. also targets the enhancement of women’s access to training FY24 gender-flagged projects on information and communication technology (ICT) skills as well as to telecom and mobile money and microfinance included the following: services in Guinea. Increasing women’s leadership in hospitality sector In July 2023 and April 2024, Kasada Hospitality Fund LP committed to a gender action plan in their hotel projects in Rwanda and Côte d’Ivoire, respectively. The plan includes conducting gender, diversity, and inclusion training for hotel employees and setting a 50 percent target for women’s managerial representation. Supporting women’s employment and leadership in renewable energy sector In February 2024, MIGA guaranteed investments in Konexa Solar 1 Ltd., a commercial and industrial electrification project in Nigeria. Konexa has agreed to several gender-related interventions concerning women as employees and women as leaders, allowing women to benefit from direct employment and leadership opportunities. MIGA ANNUAL REPORT 2024 49 STRENGTHENING MIGA’S PARTNERSHIPS TO BOOST GENDER EQUALITY In June 2024, MIGA partnered with the Insurance In addition, MIGA became an implementing partner of the Development Forum (IDF) and the Geneva Association to Umbrella Facility for Gender Equality (UFGE), alongside IFC, cosponsor the event “Inclusive Insurance: Accelerating World Bank Gender Innovation Labs, and Global Practices. Gender Equality in Emerging Markets,” hosted by Lloyd’s. The partnership will enable MIGA to access funding to This event convened leaders from the insurance industry to produce evidence-based knowledge products to support discuss strategies for integrating gender considerations more the delivery of key gender-smart client solutions. Finally, on comprehensively into their operations and products, aiming International Women’s Day, MIGA participated in the World to foster inclusive and resilient growth in emerging markets. Bank Group’s “Accelerating Gender Equality Together” The event specifically explored how political risk insurance event, which highlighted MIGA’s efforts with clients on and credit enhancement can be leveraged to support gender gender issues and how it leverages guarantee instruments to equality. contribute to advancing gender equality. MIGA also embarked on a new partnership with the Financial Alliance for Women (FAW), a global consortium of financial institutions driving women’s wealth creation. The partnership will strengthen MIGA’s support for clients in the finance and capital markets sector through access to peer learning and knowledge products. From left side, Katarina Zdraljevic, Head of Group Sustainability, ProCredit Holdings; Alan Cochran, ESG Director, JCM Power; Edward Parker, Divisional Head of Special Risks, Tokio Marine Kiln Insurance Services Limited and Ethiopis Tafara, Vice President & Chief Finance, Risk, Legal and Sustainability Officer, MIGA MIGA ANNUAL REPORT 2024 50 MIGA ANNUAL REPORT 2024 51 GENDER LEADERSHIP AWARD MIGA’s Gender Leadership Award, now in its ninth year, recognizes senior managers with a proven track record of furthering the cause of women’s advancement and gender equality in business while contributing to the mission of the Bank Group to end extreme poverty and boost prosperity on a livable planet. The award is presented annually on International Women’s Day. This year’s award was presented to Ginette Borduas, partner Following Meridiam’s long-standing mission and its and head of environmental, social, and governance (ESG) and CEO’s vision regarding ESG and impact, Ms. Borduas was sustainability at Meridiam. Under Ms. Borduas’s leadership, recognized for her dedication toward a true balance between Meridiam has developed new and innovative indicators to maximizing effectiveness and minimizing environmental and track and monitor the impact of every one of its projects from social impact of large-scale transformational infrastructure the construction site to the boardroom. Diversity at large, and projects. Ms. Borduas ensures that socioeconomic and gender equality more specifically, has been one of Meridiam’s environmental challenges that may adversely impact sustainability and strategic pillars since 2020. And its women are identified and assessed, and that project designs concrete contribution to the United Nations Sustainable consider implementing activities to address inequalities. Development Goals is measured and reported in its annual impact reports. GINETTE BORDUAS Head of environmental, social and governance (ESG) and sustainability MIGA ANNUAL REPORT 2024 52 GOVERNANCE MIGA ANNUAL REPORT 2024 53 MIGA’S BOARD A Council of Governors and a Board of Directors, representing 182 member countries, guide MIGA’s programs and activities. Each country appoints one governor and one alternate. MIGA’s corporate powers are vested in the Council of Governors, which delegates most of its powers to a Board of 25 Directors. Voting power is weighted according to the share of capital that each director represents. MIGA’s Board meets in the World Bank Group headquarters in Washington, D.C., and it convenes regularly to review and decide on investment guarantee projects and oversee general management policies. Visit the Board’s website for more information: www.worldbank.org/en/about/leadership/governors MIGA ANNUAL REPORT 2024 54 OVERSIGHT AND ACCOUNTABILITY COMPLIANCE ADVISOR INDEPENDENT EVALUATION GROUP OMBUDSMAN The Independent Evaluation Group (IEG) assesses MIGA’s The Office of the Compliance Advisor Ombudsman (CAO) is strategies, policies, and projects to improve the institution’s the independent accountability mechanism for MIGA and development results. The IEG is independent of MIGA IFC. The CAO responds to complaints from people affected management and reports its findings to MIGA’s Board of by MIGA- and IFC-supported business activities, with the Directors and the Board’s Committee on Development goals of enhancing environmental and social outcomes on the Effectiveness. ground and fostering greater public accountability of both institutions. Visit the IEG website for more information: ieg.worldbankgroup.org Visit the CAO website for more information: www.cao-ombudsman.org INTEGRITY VICE PRESIDENCY GROUP INTERNAL AUDIT An independent unit within the World Bank Group, the Integrity Vice Presidency (INT) investigates and pursues Group Internal Audit (GIA) provides independent, objective, sanctions related to allegations of fraud, corruption, insightful risk-based assurance and advice to protect and collusion, coercion, and obstruction in World Bank Group– enhance the value of the World Bank Group. GIA gives financed projects, as well as fraud and corruption by Bank management and the Board reasonable assurance that Group staff and vendors. In addition, through its Integrity processes for managing and controlling risks—as well as their Compliance Office, INT engages with parties toward meeting overall governance—are adequately designed and functioning their conditions for release from sanction. INT shares its effectively. GIA reports to the President and is under the investigative insights across the institution to help mitigate oversight of the Audit Committee. fraud and corruption risk in projects, playing a fundamental role in supporting the Bank Group’s fiduciary responsibility for Visit the GIA website for more information: the development resources it manages. www.worldbank.org/internalaudit Visit the INT website for more information: www.worldbank.org/integrity To report suspected fraud, corruption, or other sanctionable practices in Bank Group–financed projects, visit www.worldbank.org/fraudandcorruption. MIGA ANNUAL REPORT 2024 55 MIGA FINANCIAL HIGHLIGHTS FINANCIAL RESULTS By fiscal year (US$, millions) 2020 2021 2022 2023 2024 Gross premium income 232.3 239.3 229.4 245.0 272.3 Net premium incomea 117.1 121.3 116.3 123.9 130.5 Administrative expensesb 61.1 58.7 65.0 69.6 73.7 Operating incomec 56.0 62.6 51.2 54.3 56.9 Net income 57.2 81.5 27.7 139.4 179.5 Administrative expenses to net premium income ratio 52% 48% 56% 56% 57% a. Net premium income equals gross premium income and ceding commissions less premium ceded to reinsurers and brokerage costs. b. Administrative expenses include expenses from pension and other post-retirement benefit plans. c. Operating income equals net premium income minus administrative expenses, including pension costs. CAPITAL MEASURES By fiscal year (US$, millions) 2020 2021 2022 2023 2024 Total economic capitala 756 768 759 773 811 Shareholder’s equity 1,335 1,474 1,539 1,706 1,892 Operating capitalb 1,591 1,724 1,777 1,923 2,103 Total economic capital to operating capital ratio 47.5% 44.5% 42.7% 40.2% 38.6% Risk capitalc 1,001 1,054 1,083 1,092 1,140 Risk capital/operating capital 62.9% 61.1% 61.0% 56.8% 54.2% a. Amount of capital used in support of the guarantee portfolio as well as the investment portfolio and operational risk. b. Comprising paid-in capital, retained earnings / accumulated other comprehensive income / (loss) and insurance portfolio reserve, net. c. Risk metric and defined as the sum of total economic capital and buffer capital, with the latter computed using a stress testing tool developed around multiple macroeconomic and country-specific scenarios. MIGA ANNUAL REPORT 2024 56 WHO WE ARE HIROSHI MATANO JUNAID KAMAL AHMAD ETHIOPIS TAFARA Executive Vice President Vice President, Operations Vice President & Chief Finance, Risk, Legal and Sustainability Officer ARIANE DI IORIO ŞEBNEM EROL MADAN MUHAMET BAMBA FALL Director, Financial Institutions Group Director, Economics and Director, Industries Sustainability Group DEEPTI JERATH ARADHANA KUMAR-CAPOOR Director, Finance and Risk Group Director and General Counsel MIGA ANNUAL REPORT 2024 57 CONTACT Elena Palei Olga Sclovscaia INFORMATION Global Head and Sector Manager, Regional Head, Eastern Europe and Infrastructure – Transport, Water Central Asia SENIOR MANAGEMENT and Sanitation, and Telecom osclovscaia@worldbank.org Hiroshi Matano epalei@worldbank.org Executive Vice President  ACCOUNTING AND REPORTING hmatano@worldbank.org   Jessica Erickson Stiefler Thomas Obuya Acting Global Head and Sector Manager, Senior Controller & Junaid Kamal Ahmad Energy and Extractive Industries Head of Sustainability Reporting Vice President, Operations jstiefler@worldbank.org tobuya@worldbank.org jahmad@worldbank.org REGIONAL REINSURANCE Ethiopis Tafara Layali Abdeen Frank Linden Vice President & Chief Finance, Risk, Senior Underwriter, and Regional Head Head, Reinsurance Legal and Sustainability Officer of MENA flinden@worldbank.org etafara@worldbank.org labdeen@worldbank.org ECONOMICS AND SUSTAINABILITY Ariane Di Iorio Rouzbeh Ashayeri Atia Byll-Cataria Director, Financial Institutions Group Senior Underwriter, North America Head of Gender adiiorio@worldbank.org Business Origination Abyllcataria@worldbank.org rashayeri@worldbank.org Şebnem Erol Madan Hiroyuki Hatashima Director, Economics and Sustainability Yann Burtin Chief Evaluation Officer Group Head, Western Europe hhatashima@worldbank.org serol@worldbank.org yburtin@worldbank.org Yasser Ibrahim Muhamet Bamba Fall Lin Cheng Sector Manager, Sustainability 1 Director, Industries Representative, China and Underwriter yibrahim@worldbank.org mfall3@worldbank.org lcheng1@worldbank.org Moritz Nebe Deepti Jerath Olga Calabozo Garrido Sector Manager, Economics Unit Director, Finance and Risk Head, Latin America and the Caribbean mnebe@worldbank.org djerath@worldbank.org ocalabozogarrido@worldbank.org Kate Wallace Aradhana Kumar-Capoor Shuichi Hayashida Sector Manager, Sustainability 2 Director and General Counsel Acting Head, Japan, and Head, West kwallace@worldbank.org akumarcapoor@worldbank.org and Central Africa shayashida@worldbank.org PORTFOLIO MANAGEMENT CORPORATE Hoda Moustafa Marcus Williams Tim Histed Global Head of Portfolio Chief of Staff Head, South East Asia and Australasia hmoustafa@worldbank.org mwilliams5@worldbank.org thisted@worldbank.org PARTNERSHIPS SECTORS Jaeyoung Jin Laura Alonzo Nabil Fawaz Head, North Asia Co-head of Partnerships Global Head and Sector Manager, (China, Mongolia, Korea) lalonzo@worldbank.org Manufacturing, Agribusiness, and jjin1@worldbank.org Services Chinwe Binitie nfawaz@worldbank.org Jae Hyung Kwon Co-head of Partnerships Head, South Asia cbinitie@worldbank.org Christopher Millward jkwon@worldbank.org Global Head and Sector Manager, BUSINESS INQUIRIES Finance and Capital Markets Nkemjika Onwuamaegbu migainquiry@worldbank.org cmillward@worldbank.org Regional Head, Africa nonwuamaegbu@worldbank.org MIGA ANNUAL REPORT 2024 58 PHOTO CREDITS COPYRIGHTS AND CREDITS Cover: Jack Swynnerton/World Bank © 2024 Multilateral Investment Guarantee Agency (MIGA) Inside cover: zstock/Shutterstock 1818 H Street NW, Washington, DC 20433 Page 3: Jodiann Anderson/World Bank www.miga.org Page 5: Joseph Grant Ellis Jr. and Tyler Reed Stewart/World Bank Page 6: Grant Ellis/World Bank This work is a product of staff of the Multilateral Investment Guarantee Agency Page 7: Jenson/Shutterstock (MIGA) with external contributions. 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