The Multilateral Investment Guarantee Agency (MIGA) has mobilised $9.3 billion in development financing by issuing $5.5 billion in guarantees to cross-border private investors in FY19.
According to a statement, the $5.5 billion is a record for MIGA, and double that from six years ago. The guarantees from MIGA will help provide access to power to some 3.6 million people, generate $791 million in taxes and fees annually paid to host governments and avoid an estimated 3.3 million tonnes of CO2 equivalent emissions.
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Nearly 30% of the guarantees issued supported projects in IDA (lower income) countries and fragile settings, and almost two-thirds contributed to climate change mitigation or adaptation.
Over the last six years, MIGA’s portfolio in IDA countries nearly doubled, and more than doubled for climate finance, reflected in a doubling of overall outstanding guarantees to $23.3 billion.
“Mobilisation of private cross-border investment supported by MIGA increased over the last six years, demonstrating our commitment to helping improve the lives of people across the world – particularly in low-income countries and fragile and conflict-affected states,” said Keiko Honda, CEO and Executive Vice President of MIGA.
“Going forward, we will work even more closely with investors, governments, and other international institutions to ramp up our on-the-ground development impact.”
Projects MIGA provided guarantees for in FY19 include:
- The 420MW Nachtigal hydropower plant in Cameroon, which will deliver enough power for over 450,000 customers
- A manufacturing plant in Egypt that will export glass tableware to the Middle East, Africa, South Asia and the United States
- Six solar power plants in South Africa that will have enough capacity to provide power to approximately 222,000 customers
A member of the World Bank Group, MIGA also deepened its collaboration with its sister agencies. MIGA collaborated closely on a joint raisins processing project with IFC in Afghanistan, and both the World Bank and IFC on power generation in Uganda and Cameroon, receiving a President’s Award for Excellence for the work done on these projects.
In alignment with the suggestion by the G20 Eminent Persons Group on Global Financial Governance that MDBs systematically leverage MIGA as a global risk insurer in development finance, the Agency revised and standardised the formats of its guarantee contracts (available on www.miga.org).
MIGA also boosted its partnerships with numerous MDBs, signing Memoranda of Understanding with ICIEC, the investment and export credit insurance arm of the Islamic Development Bank, the Asian Development Bank, and the European Bank for Reconstruction and Development.
Source: World Bank