Connecting Telecommunications Investments

Driven by rapid technological change and the lower cost of cell phones versus fixed landlines, global demand for telecommunications continues to grow. While the rate of telecommunications growth in high-income countries has tapered off, reflecting higher penetration rates and a maturing market base, growth in middle and lower-income countries remains strong, especially with the increase in broadband connectivity. Foreign and regional investors are increasingly drawn into developing economies in search of new market opportunities, but these countries often carry what investors perceive to be political risks. MIGA’s investment guarantees mitigate the noncommercial risks associated with investment in telecommunications projects, enhancing the deals and protecting the bottom-line potential.