Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group, provides political risk insurance or guarantees against losses caused by noncommercial risks to facilitate foreign direct investment (FDI) in developing countries. MIGA’s mission statement is “To promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives.”
MIGA’s mandate is to promote cross-border private investment in developing countries by providing guarantees (political risk insurance and credit enhancement) to investors and lenders. In FY20, MIGA issued nearly US$4 billion in new guarantees, helping mobilize over US$7 billion in total financing. FY20 projects will provide access to power to some 12.4 million people, procure US$4.3 million in goods locally each year, and avoid approximately 3 million tons of carbon dioxide equivalent (tCO2e) emissions per year. Of the 47 projects supported during FY20, 70 percent addressed at least one of the three strategic priority areas: IDA-eligible countries, fragile and conflict-affected situations (FCS), and climate change. Since its creation, MIGA has issued over $59 billion in guarantees across 118 developing countries.
In fiscal year 2017, MIGA continued to work on the
WBG’s twin goals of eradicating extreme poverty and
promoting shared prosperity by focusing on IDA (low
income) countries, Fragile and Conflicted States, Climate
Change and Innovation. Projects we supported will help 8.5 million people gain
access to power, help avoid 1.1 million tons of greenhouse
gas emissions, and enable access to healthcare
for 8.7 million patients. We issued $4.8 billion in guarantees
to private investors. This is a record for MIGA.
Nearly half of our projects were in IDA. We also continued
to work tirelessly to ensure that we supported
investments in fragile and conflict-affected countries,
which make up 10% of our portfolio.