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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

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Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Conflict-Affected and Fragile Economies Facility (CAFEF)

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What is CAFEF?

CAFEF, a Multi-Donor Trust Fund, supports MIGA’s activities in Fragile and Conflict-Affected States (FCS). CAFEF was initially launched in 2013 with funding from the Government of Canada, the Swedish International Development Cooperation Agency (SIDA), and the UK’s Department for International Development (DFID). Its current donors are the government of Canada and SIDA.

What does it do?

CAFEF de-risks MIGA Guarantees in FCS contexts. It does so by providing first-loss and/or second loss layers (together “initial loss layer”) to MIGA guarantees. MIGA may choose to participate for up to 20 percent of the first-loss layer. The excess loss over and above the initial loss layer is covered by MIGA’s own books and the private reinsurance market.

How is it used?

MIGA deploys CAFEF at its sole discretion in cases where de-risking of guarantees in FCS contexts is necessary.

What are CAFEF’s Benefits?

CAFEF enables MIGA to support projects in FCS contexts that cannot proceed without a de-risking solution. The use of CAFEF remains highly additional to MIGA’s work in FCS contexts. The use of CAFEF can also make guarantees more affordable and accessible for MIGA clients. CAFEF is also an excellent vehicle for Donors interested in supporting blended finance in FCS contexts. MIGA blends donor funds channeled through CAFEF with exposure on its own balance sheet, and crowds-in available reinsurance, to deliver a high degree of leverage for private sector mobilization.  

What are CAFEF’s Development Impacts?

As of the end of 2021, CAFEF had supported around $719 million in MIGA guarantee issuance (1:10 ratio) and around $1.3 billion in total activity financing (1:19 ratio) respectively in purely FCS contexts. CAFEF supported projects have also had the following development impacts:

  1. Power Production: 1806.88 Gwh of power has been produced.
  2. Payments to Government: $31.68m have been paid to governments.
  3. Domestic Purchases: Domestic economies have been reinforced by US$ 475.19m in domestic purchases.
  4. Direct employment: A total of 3,816 people have received direct employment, of which 602 have been women.
  5. Beneficiaries Reached: More than 16,000 farmers have been benefitted, 3.53 million people have been provided with new or improved energy services, and 42.59 million people with internet, communications and technology (ICT) services.
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