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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.

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

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

MIGA Guarantee Facility (MGF)

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What is MGF?

The MIGA Guarantee Facility (MGF) provides shared first-loss and risk-participation akin to reinsurance for MIGA guarantees. It aims to bridge the gaps where market and MIGA-arranged capacity for eligible non-commercial risks is not sufficient or available to crowd in private investment into IDA PSW-eligible countries. MGF provides coverage for MIGA’s political risk insurance (PRI) as well as credit enhancement products. Claim amounts are disbursed by IDA using MGF resources (through a risk sharing agreement with MIGA) to MIGA, upon a call on the guarantee by the beneficiary pursuant to a claim determination as per the MIGA contract. The MGF has an overall designated limit of up to $500 million.

What does it do?

The MGF provides additionality by increasing both the scale and scope of MIGA’s activities in IDA PSW-eligible countries. The MGF is utilized when existing MIGA  instruments are required to advance the project, but there is insufficient MIGA or market capacity to provide the coverage needed (e.g., where MIGA has reached exposure limits, or private market capacity does not exist, is insufficient or cost prohibitive). It is particularly useful in the case of large-scale, systemically important transactions, programmatic approaches to sectors involving multiple projects, or multi-sector approaches.  

How is it used?

MIGA deploys the MGF in cases where de-risking of guarantees in IDA-PSW countries is an absolute necessity.  The MGF is deployed at MIGA’s discretion, in consultation with relevant stakeholders such as IDA and the country office.

What are MGF’s Benefits?

The MGF enables MIGA to support projects in IDA-PSW countries that cannot proceed without a de-risking solution. The use of MGF can also make guarantees more affordable and accessible for MIGA clients.

What are MGF’s Development Impacts?

Under IDA18, the MGF enabled guarantees worth over $660 million to support projects worth approximately $950 million. Under IDA19, the MGF has enabled guarantees worth $794 million to support projects worth around $1.63 billion.

The MGF has offered high leverage to IDA-Donors. As of June 30, 2022, every dollar of IDA resources utilized through the MGF had facilitated around $4 in gross guarantee issuances by MIGA, and around $7 in investments.

As of end 2021, Development Effectiveness Indicator System (“DEIS”) data was available with MIGA for eight projects supported the MGF across the Energy and Extractives, Infrastructure and Manufacturing, Agriculture and Services sectors. With a cumulative IDA-PSW resource allocation of around $135.31 million at guarantee issuance, these projects have demonstrated the following significant development impacts:

  1. Direct Employment: A total of 5,358 people have received direct employment, of which 1535 have been women.
  2. Domestic Purchases: Domestic economies in the poorest countries have been reinforced by $195.73 million in domestic purchases.
  3. Payments to Government: $13.97 million has been paid to governments by MGF-supported projects in the form of taxes and other payables.
  4. Beneficiaries Reached: More than 11.55 million had benefitted from improved internet, communications and technology (ICT) services.
  5. Power Production: 35.399 Gwh of power was produced.
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