MIGA FY22 Highlights

Mobile money, which provides access to basic financial services through mobile networks, is an important enabler of financial inclusion, particularly for low-income populations who may lack access to formal bank accounts. In Sub-Saharan Africa, the growth and impact of mobile money services has been particularly profound: the region has over 180 million active accounts, and total transaction values reached $700 billion in 2021, representing 70 percent of global mobile money transactions.

To support the development of mobile money services, MIGA issued guarantees to cover investments made by The Rise Fund into Airtel Money, one of the region’s leading mobile money service providers. Originally a subsidiary of Airtel Africa, Airtel Money, with presence in 14 different countries across Sub-Saharan Africa, was spun off as a separate entity to help bring in outside investors such as The Rise Fund and Mastercard to foster growth and innovation. These investments, many of which are targeted to IDA and FCS countries, will help push forward the World Bank Group’s Digital Economy for Africa initiative, and MIGA is proud to play a role in mobilizing private investment to deepen financial services in the region.

The COVID-19 pandemic has adversely affected Colombia and its capital, Bogotá. The country has reported over 6 million confirmed COVID-19 cases and 138,000 deaths as of late February 2022. Bogotá, a densely populated urban metropolis of more than 8 million people, has experienced major outbreaks and a greater incidence of COVID-19 than the country at large. Colombia’s economy has also suffered, with gross domestic product (GDP) falling an estimated 6.8 percent in 2020 before rebounding to precrisis levels in 2021. The country’s publicly funded and highly decentralized health care system offers comprehensive health insurance to nearly 98 percent of the population. However, the COVID-19 pandemic has exposed health system vulnerabilities, ranging from outdated infrastructure and lack of ICU beds to shortages of laboratories and reagents to analyze COVID-19 tests. In Bogotá, COVID-19 surges have stressed the health care system significantly, with ICU occupancy rates at times approaching 100 percent.

The MIGA-guaranteed loan supported Bogotá’s response to the pandemic by funding COVID-19 testing and the purchase of ambulances, personal protection equipment, and other materials to support COVID-19 mitigation efforts. The loan also supported improvements in Bogotá’s health care services through the expansion and upgrading of its health infrastructure, provision of equipment for primary care and specialized clinics, and strengthening of Bogotá’s Medical Emergency Information System.

Few industries have been hit harder by the COVID-19 pandemic than hospitality. Hotels in Sub-Saharan Africa were no exception as many nations closed borders, blocking the international visitors who sustain the industry there. When a hotel closes for an extended period, management cannot simply open its doors and welcome guests back. Pipes must be cleared of lead and copper that accumulate in stagnant water; surfaces must be examined for mold; and showerheads, toilets, and hot tubs must be tested for bacteria. All of that costs money—and in developing economies, capital can be hard to come by.

MIGA guarantees will help ensure that hotels are built or redeveloped in Sub-Saharan African countries and will help to preserve jobs in hotels that are being remodeled to improve energy efficiency. In January 2022, MIGA issued a master contract to Kasada Hospitality Fund LP. MIGA’s support to Kasada, whose operations span 10 countries, has already materialized through a subproject bringing guarantees to eight hotels acquired by the fund in 2021 in Cameroon, Côte d’Ivoire, and Senegal.

Roads are the primary mode of transport in Kenya, accounting for over 80 percent of the country’s total passenger traffic and 76 percent of freight. The transport sector is relatively underdeveloped in some regions of Kenya, limiting economic development and climate change resilience and contributing to regional disparities. Although the road network is extensive, only a limited portion is paved and in good condition; the rest consists of gravel and earth roads. The government of Kenya has therefore prioritized the improvement of the country’s road network through selected public-private partnership programs, including the country’s Roads Annuity Programme.

The MIGA guarantees supported improvements to the road network which include shorter travel times by enabling faster driving speeds and the potential of some roads to become traffic bypasses away from densely populated areas or to provide shortcuts between other roads. Road upgrades have also reduced vehicle operating costs given the improvement in road quality and greater fuel efficiency. Furthermore, they contributed to flood resilience as a result of improved road drainage. The initiative is consistent with a low-carbon, climate-resilient development path for Kenya.