
Low-Income (IDA) Countries
The perception of risk often deters the private sector from investing in low-income countries.
MIGA is working to mitigate investor non-commercial risk in IDA-eligible countries (low-income countries). Supporting cross-border investment into IDA countries is an important priority for MIGA, and in FY21, the Agency issued $1.3 billion in guarantees in support of 20 projects (50% of total projects supported) in 15 IDA-eligible countries.
IDA Facilities
Projects in IDA countries are possible through innovative applications of MIGA guarantees with the IDA Private Sector Window (PSW) and the IDA MIGA Guarantee Facility (MGF), which expands the coverage of MIGA guarantees through shared first-loss and risk participation akin to reinsurance. This results in significant mobilization opportunities, as every dollar of PSW resources deployed results in up to US$5 of private sector investment mobilized and co-financed.
In FY21, MIGA issued 8 MGF-supported guarantees in IDA countries including Burkina Faso, DRC, Liberia, Rwanda, and Sierra Leone for a total of $131 million, of which $40 million was ceded to IDA using a shared first-loss structure.
In FY20, MIGA issued four guarantees for a total of US$193.1 million with the support of the PSW and ceded US$73.5 million under a first loss layer to IDA. Projects supported include hydropower facilities in Nepal and the Solomon Islands, as well as a wind farm project in Djibouti.

* GHG emissions avoided calculations were included in the DEIS from FY17 onwards.
Examples of MIGA-Supported Projects in IDA Countries
Sierra Leone
In 2019, MIGA issued $36 million in guarantees for the design, construction and operation of a facility in southern Sierra Leone that will cultivate, harvest and process pineapples and other tropical fruit for export. The Agency is providing protection from Expropriation and Breach of Contract for up to 10 years to Dole Asia Holdings, a subsidiary of ITOCHU Corporation, for its investments into Sierra Tropical Limited.
In addition to its own resources, MIGA uses the International Development Association’s (IDA) MIGA Guarantee Facility (MGF) to provide a first-loss layer in support of the project. Nippon Export and Investment Insurance (NEXI) reinsures a portion of MIGA’s exposure, in addition to providing its own insurance to Dole International.
Cambodia
Cambodia needs to attract investments in infrastructure and connectivity in order to sustain economic growth. However, as power demand has accelerated in recent years, domestic supply has been unable to meet demand. Combined peak demand has grown from 262.2 MW in 2007 to the estimated 1,124 MW in 2016 at a growth rate of 17.56% per year. Because of these constraints, MIGA has issued US$76.0 million in guarantees to support the refinancing of a 230 KV transmission network project which provides energy to Phnom Penh and smaller cities in the region.
Press Release: MIGA Facilitates Switch to Commercial Financing for Power Transmission in Cambodia
Djibouti
In April 2020, MIGA issued guarantees that will support Djibouti’s first utility-scale wind project, which also represents the country’s first independent power producer (IPP). The guarantees amount to US$91.6 million and cover up to 90% of investments made and future earnings in the project for up to 20 years. They will provide protection against Currency Inconvertibility and Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance.
In addition to its own resources, MIGA is using the International Development Association’s (IDA) MIGA Guarantee Facility (MGF) to provide a first-loss layer in support of the project. The MGF helps bridge gaps where market and MIGA-arranged capacity are insufficient or unavailable to crowd in private investment.
(Last Updated: January 26, 2023)