MIGA's mission is to support economic growth, reduce poverty, and improve people's lives by mobilizing cross-border private investment into developing countries. In order to achieve this, the Agency needs a clear understanding of the development outcomes of the projects it supports. We collect a set of common indicators from clients and put in place a development outcome results system known as the Development Effectiveness Indicator System (DEIS).
MIGA’s new guarantee business volume during FY23 reached a record high of $6.4 billion in support of 40 projects compared to $4.9 billion of new guarantees issued in FY22 in support of 54 projects. Of the 40 projects supported during FY23, 93% addressed at least one of the strategic priority areas, namely, IDA-eligible countries, Fragile and ConflictAffected Situations (FCS) and Climate Finance.
Expected Development Results (FY23)
The guarantees issued in FY23 are expected to create over 8700 direct jobs, add 40 million new subscribers to the internet network mainly in Sub-Saharan Africa, generate more than $128 million in tax revenue to the host governments per year, and avoid nearly a million metric tons of CO2 emissions annually.
Of the 40 projects supported by MIGA during FY23, 93% addressed at least one of the strategic priority areas, namely, IDA-eligible countries, Fragile and ConflictAffected Situations (FCS) and Climate Finance.
During FY23, MIGA issued guarantees for $1.8 billion in support of six projects, which included four non-honoring projects across Colombia, Mexico and Peru and two political risk insurance projects in Argentina and St. Lucia. In Sub-Saharan Africa (SSA), the Agency supported 14 projects in the region across 11 countries and issued guarantees totaling $1.9 billion. This included several highly impactful projects such as the Wakanda Telecom Project in Ethiopia, where MIGA provided a $1 billion guarantee for political risk insurance. New guarantees issued in Europe and Central Asia amounted to $1.7 billion and the majority of them were capital optimization guarantees. MIGA issued a new guarantee for $900 million with respect to an existing mining project in Mongolia. The Agency issued one capital optimization guarantee for $193 million covering the guarantee holder’s voluntary reserves held at the Central Bank of Algeria.
Since the COVID-19 Fast-Track facility launch in April 2020, initially at $6.5 billion but subsequently increased to $10-12 billion by the Board of Directors, MIGA has issued $9.9 billion in new guarantees, with $2.3 billion issued in FY23.
In total, 49 projects across four regions benefited from guarantees provided by the Agency for urgently needed medical goods and services, credit enhancement through government agencies and capital optimization for financial institutions.