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.
In FY23, MIGA’s support to IDA-eligible countries totaled $1.8 billion, in respect of 12 projects in ten countries namely, Congo DRC, Ethiopia, Guinea, Kenya, Kosovo, Kyrgyz Republic, Madagascar, Senegal, Somalia and St. Lucia.
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.
* GHG emissions avoided calculations were included in the DEIS from FY17 onwards.
Examples of MIGA-Supported Projects in IDA Countries
In 2022, MIGA issued guarantees of $24 million to JCM Golomoti UK Limited for equity and shareholder loan investments into Golomoti JCM Solar Corporation Limited for the development, construction, and operation of a new 20-megawatt solar photovoltaic plant in Malawi.
The guarantees will extend over 20 years and protect JCM against the risks of transfer restriction and breach of contract. The plant includes a battery energy storage system — the first in Malawi.
Over the past few years, MIGA has issued more than $600 million in guarantees to help Serbia and Kenya build more climate-resilient roads. MIGA is committed to promoting FDI and helping emerging markets build more climate-resilient roads to reduce transportation costs and create jobs.
(Last Updated: August 16, 2023)