The idea for a multilateral political risk insurance provider was floated long before MIGA’s establishment—in fact as far back as 1948. But it was not until September 1985 that this idea started to become a reality. At that time the World Bank’s Board of Governors began the process of creating a new investment insurance affiliate by endorsing the MIGA convention that defined its core mission: "to enhance the flow to developing countries of capital and technology for productive purposes under conditions consistent with their developmental needs, policies and objectives, on the basis of fair and stable standards to the treatment of foreign investment."
On April 12, 1988 an international convention established MIGA as the newest member of the World Bank Group. The agency opened for business as a legally separate and financially independent entity. Membership was open to all IBRD members, and the agency began with capital stock of $1 billion. MIGA’s original 29 members were: Bahrain, Bangladesh, Barbados, Canada, Chile, Cyprus, Denmark, Ecuador, Egypt, Germany, Grenada, Indonesia, Jamaica, Japan, Jordan, Korea, Kuwait, Lesotho, Malawi, Netherlands, Nigeria, Pakistan, Samoa, Saudi Arabia, Senegal, Sweden, Switzerland, United Kingdom, and United States.
MIGA was created to complement public and private sources of investment insurance against non-commercial risks in developing countries. MIGA’s multilateral character and joint sponsorship by developed and developing countries were seen as significantly enhancing confidence among cross-border investors.
Today, MIGA’s mission is straightforward: To promote foreign direct investment into developing countries to support economic growth, reduce poverty and improve people’s lives.
What follows are some highlights of our story by fiscal year (July 1-June 30).
MIGA is established
Mr. Yoshio Terasawa appointed the first Executive Vice President
Foreign Investment Advisory Services (FIAS) established as a joint venture of MIGA and IFC
MIGA issues its first investment guarantee contracts supporting four projects representing a total of $1.04 billion in direct investment
First reinsurance contracts signed with national agencies: the Export Credit Agency of Canada and the Overseas Private Investment Corporation of the United States
MIGA holds its first investment promotion conference— in Ghana
Membership tops 100 countries
Mr. Akira Iida appointed Executive Vice President
MIGA joins the Berne Union
MIGA focuses its technical assistance activities exclusively on investment promotion
MIGA launches IPAnet—a global internet-based information exchange, communications network, and marketplace
First contract issued under MIGA’s Cooperative Underwriting Program (CUP) for a power project in Indonesia
EU Investment Trust Fund for Bosnia and Herzegovina: $12 million investment guarantee fund established in partnership with MIGA; fully utilized
The West Bank and Gaza Investment Guarantee Trust Fund: $20 million in capacity established in 1997
Mr. Motomichi Ikawa takes office as Executive Vice President
MIGA marks its 10th anniversary
The Council of Governors adopts a resolution for a general capital increase of approximately $850 million, accompanied by a grant of $150 million transferred from the World Bank’s IBRD to MIGA. The doubling of MIGA’s capital resources to $2 billion enables the agency to deliver and expand its services to developing-member countries
MIGA holds first symposium with Georgetown University on international political risk—the symposium remains an influential, biannual event
MIGA for the first time issues guarantees exceeding $1 billion in a single year, reaching a total of 1.3 billion
MIGA approves Environmental Assessment and Disclosure Policy and implements environmental standards for all new MIGA-insured projects
First MIGA/IFC Compliance Advisor/Ombudsman appointed
The Government of Ethiopia appoints MIGA as mediator for the resolution of the disputes between the Ethiopian government and foreign investors for projects not guaranteed by MIGA
Country membership tops 150
MIGA pays first claim
New issuance reaches $ 2 billion
Four MIGA-supported projects, including a telecommunications project in Brazil and a mining project in Russia, receive industry awards from major publications
Investment Promotion Toolkit launched
MIGA conducts investor survey in the wake of September 11, 2001 attacks
Project Finance Magazine names the MIGA-supported Manila North Tollways Corporation project the "Asia-Pacific Transport Deal of the Year 2001"
Ms.Yukiko Omura takes office as Executive Vice President
MIGA launches Small Investment Program to encourage investment in small and medium-size enterprises
MIGA launches Afghanistan Investment Guarantee Facility to support foreign direct investment into that country
MIGA-backed projects receive five “Deal of the Year'” awards
MIGA supports project in El Salvador that sells carbon credits gained by reducing greenhouse gas emissions
MIGA supports first project under the new facility for Afghanistan to promote development in the cotton sector
MIGA supports its first project funded through an Islamic financing structure, issuing guarantees for a port in Djibouti
MIGA launches PRI-Center.com, a political risk management and insurance portal, and consolidates its existing investor information services into FDI.net, providing a single entry point for investors seeking information on foreign direct investment
MIGA celebrates 20th anniversary
Issued guarantees reach historic $2.1 billion
Four MIGA-supported projects—in Uganda, Djibouti, Costa Rica, and Kazakhstan—win top industry honors
MIGA’s technical assistance services integrated with FIAS, a multi-donor funding platform for World Bank Group investment climate reform programs
Ms. Izumi Kobayashi named Executive Vice President
MIGA’s Board of Directors approves substantial changes to the agency’s operational regulations encompassing a number of measures including one new type of coverage: non-honoring of sovereign financial obligations. The changes represent the largest and most significant expansion of MIGA’s business toolkit since 1988
MIGA’s support to investors this year includes $1.2 billion in guarantees to support the real economy in the Europe and Central Asia region, which was hit particularly hard by the financial crisis
MIGA launches World Investment and Political Risk as an annual "flagship" publication
Basel Committee on Banking Supervision classifies MIGA as a "highly-rated multilateral," a treatment that recognizes the special value of MIGA’s insurance to banks MIGA launches Asia hub to expand physical presence in the region
Council of Governors approves amendments to MIGA’s convention to enhance MIGA’s effectiveness as a multilateral provider of political risk insurance
MIGA celebrates 25th anniversary
MIGA extends non-honoring of financial obligations cover to include financial obligations from state-owned enterprises
MIGA issues a record $3.2 billion in new guarantees while gross exposure reaches $12.4 billion
MIGA introduces a new model for blended financing in Brazil
MIGA provides its first guarantee in support of the pension funds sector in El Salvador
Of a record $4.3 billion in guarantees issued, 53 percent of investments insured by MIGA are in poverty-afflicted areas
MIGA launches its first Gender CEO Award
MIGA opens its first Africa regional hub in Dakar, Senegal
MIGA issues a record $4.8b in guarantees to private sector investors and lenders
MIGA brings to the market an innovative project bond, in support of Turkey’s ambitious 'Health Public-Private Partnership’ program, that segregates project risk from sovereign risk. A 20-year MIGA guarantee and an EBRD liquidity facility allow an infrastructure bond to obtain a credit rating two notches above the sovereign rating.
MIGA issues guarantees for the largest wind energy farm in West Africa.
MIGA conducts first-ever issuance of Capital Optimization Guarantee in the MENA region.
FY2019 closes with a record breaking $5.5 billion in guarantees issued to cross-border private investors.