Cultivating Agribusiness Growth

While worldwide demand for foodstuffs is high and investment needs are great, the fact remains that agricultural investments are risky business— especially in the developing world.

MIGA guarantees are well-suited to mitigating the noncommercial risks of agribusiness investments, thereby lowering the cost of capital and helping secure financing. Our guarantees reassure lenders that their investments are protected and help equity owners overcome hesitations that may loom large prior to deal signing, particularly for costly investments in high-risk countries. Once a deal is in place, MIGA guarantees, backed by the World Bank Group, bring companies peace of mind, providing an added measure of security that can stabilize a project's risk profile and reinforce positive relations with host governments.

MIGA can also help guide agribusiness companies as they face challenges related to the environmental and social aspects of their investments. For example, key natural resources need to be managed effectively while yields are increased to meet market demand. Investments in agriculture can play a significant role in poverty reduction, but only if local production needs are met and high labor standards are practiced. MIGA has the experience to advise its agribusiness clients in implementing social and environmental best practices in their operations.