At a Glance · The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, promotes foreign direct investment (FDI) into developing countries to support economic growth, reduce poverty, and improve people’s lives. · MIGA encourages developmentally beneficial investment by providing political risk insurance (PRI) against the risks of currency inconvertibility and transfer restriction; expropriation; war, terrorism, and civil disturbance; breach of contract; and non-honoring of sovereign financial obligations. · Since its inception, MIGA has provided more than $24 billion in guarantees (PRI) for more than 650 projects in over 100 developing countries. MIGA currently has an outstanding guarantees portfolio of $9.1 billion. · Projects supported by MIGA create jobs; provide water, electricity, and other basic infrastructure; strengthen financial systems; generate tax revenues; transfer skills and technological know-how; and help countries tap natural resources in an environmentally sustainable way. · MIGA’s guarantees act as a catalyst to restore market confidence for investors. The agency also helps resolve disputes between investors and host governments to keep MIGA-supported projects and their benefits on track. · The agency also works closely with its private and public sector reinsurance partners to maximize the insurance capacity that MIGA can bring to a project. By fronting transactions, MIGA provides access to insurance capacity that otherwise would not have been available to clients and host countries. · MIGA shares knowledge as part of its mandate to support FDI into emerging markets, underscoring its role as a thought leader and source of pertinent information for the political risk insurance community. Strategic Priorities MIGA’s strategy focuses on areas where it can make the greatest difference: · Investments in IDA-eligible countries. These markets typically have the most need and stand to benefit the most from foreign investment, but may not be well served by the private insurance market. · Investments in conflict-affected countries. While these countries tend to attract considerable donor goodwill once conflict ends, aid flows eventually decline. With many investors wary of potential risks, PRI becomes essential to bring in investment. · Investments in complex projects, mostly in infrastructure and the extractive industries. Lack of public financing options means private investment is crucial, especially in the poorest countries. These projects often help catalyze myriad development gains. · Support for South-South investments. Investments between developing countries are contributing to an ever-increasing proportion of FDI flows—and economic integration between developing countries can have a powerful effect. However, private insurers or national export credit agencies in these countries, if they exist at all, often lack the ability and capacity to provide political risk insurance. Recent Highlights MIGA is focusing on consolidating and diversifying its business in collaboration with other World Bank Group members and enhancing its position as a knowledge hub on FDI and PRI: · MIGA issued $2.1 billion in new guarantee coverage in fiscal year 2011—nearly all of the coverage was issued to new clients and was diversified across sectors and regions. More than half of the 38 projects supported were in IDA countries and 76 percent of the projects supported fell into one or more of our strategic priority areas. · MIGA launched an initiative for the Middle East and North Africa aimed at mobilizing $1 billion in insurance capacity to retain and encourage FDI in the region. The agency has also stepped up outreach to investors and lenders and is sharing its global experience on managing political risks. · MIGA continues to play an important role in conflict-affected countries and fragile states, providing coverage in countries where other insurers are often not willing to go. MIGA has provided guarantees in support of investments into Iraq, Kosovo, Republic of Congo, and Liberia this past fiscal year, while issuing guarantees this fiscal year for an ongoing and successful telecommunications project in Afghanistan. · MIGA has provided investment guarantees to support the expansion of Istanbul’s metro system, which will improve the quality of life in the metropolis. The project uses MIGA’s new authority to provide guarantees for stand-alone debt as well as non-honoring of sovereign financial obligations. · MIGA supported a number of new agribusiness transactions this past fiscal year—bolstering the Bank Group’s commitment to helping developing countries improve agriculture’s contribution to food security, raising the incomes of the poor, and facilitating economic transformation. Related Links What is the investment guarantees program? MIGA investor newsletter The Small Investment Program The West Bank and Gaza Investment Guarantee Trust Fund Environmental and Social Challenges Fund for Africa World Investment and Political Risk 2010 Contacts: Mallory Saleson, (202) 473-0844, msaleson@worldbank.org Rebecca Post, (202) 473-1964, rpost@worldbank.org Cara Santos Pianesi (202) 458-2097, csantospianesi@worldbank.org Investor contact: Michael Durr, (202) 458-4798, mdurr@worldbank.org Updated July 2011 | 
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