Keiko Honda, executive vice president and CEO of the Multilateral Investment Guarantee Agency (MIGA) - the political risk insurance arm of the World Bank Group – is in Johannesburg this week to meet with private sector investors and government officials.
While in South Africa, Honda will take stock of progress on MIGA-backed projects, and explore opportunities for supporting further private sector activity.
“The Government has set an ambitious plan for drawing in private sector investment.
“We are committed to supporting this ambition by helping reduce risk for investors and lenders,” Honda said.
The guarantee agency said in a statement that it currently supports eight projects in South Africa, amounting to some $1.56 billion in political risk insurance and credit enhancement.
MIGA also provides guarantees amounting to over $630 million for outward investment from South Africa to other parts of Africa. MIGA’s current support to the continent as a whole is $4.9 billion.
Recent projects MIGA has supported in South Africa include three wind power farms to be built and run by Lekela Power in Khobab, Loeriesfontein, and Noupoort. Once operational, these farms will have a generation capacity of 360MW. Read more: Fact file: Northern Cape wind farms
In addition, MIGA has also recently supported first-time investments by CIGenCo SA in two solar power plants in neighbouring Namibia.
As a member of the World Bank Group, the agency is focused on development impact by helping mobilise private capital.
Clients with whom MIGA works in the country are expected to provide over 57,000 people with access to power, generate $546 million annually in government revenues, provide $1.6 billion in loans per annum, and avoid 1.4 million metric tonnes of greenhouse gases.