MIGA and IDB Invest Collaborate to Boost Development Impact
WASHINGTON, Sept. 1, 2023 – The Multilateral Investment Guarantee Agency of the World Bank (MIGA) and IDB Invest, the private sector arm of the Inter-American Development Bank Group, announced a historic four-year partnership to mobilize more private sector capital in Latin America and the Caribbean. MIGA, the political risk insurance agency of the World Bank, and IDB Invest have agreed to combine and deploy risk-shifting and financing solutions in the region.
The cooperation agreement calls for regular engagement between the two institutions to develop a shared pipeline of projects. This will expand the number of bankable projects and deepen the relationship between the two institutions and potential private sector investors. The collaboration is expected to significantly impact the region’s development, recognizing the crucial role of the private sector in driving economic growth and reducing poverty.
“Amid multiple crises on the global front, MIGA’s role is to encourage private sector investors and provide increased stability by helping in managing and mitigating country risks,” said Hiroshi Matano, Executive Vice President of MIGA. “Collaborating with our partners will be crucial in crafting solutions to the challenges of our time, unlocking new opportunities, and ultimately mobilizing the much-needed private sector investment to meet our development goals.”
“We are committed to expanding our impact in the region,” said James P. Scriven, CEO of IDB Invest. “We are evolving our business model and increasing capital, we aim to attract new investments and enhance development impact across Latin America and the Caribbean. The partnership with MIGA will enable us to access markets and initiatives that were previously considered too risky but are urgently needed now.”
The partnership comes at a time when the world is facing interconnected challenges to development and recognizes the crucial role of the private sector. The collaborative efforts between MIGA and IDB Invest aim to identify barriers to private sector investment, as well as promote activities that lead to innovation of new and scalable projects and products, while simultaneously mitigating risk for investors.
“In pursuing this collaboration, MIGA and IDB Invest will focus on innovation and projects across all sectors with a special emphasis on protecting the planet and promoting inclusion, particularly with respect to gender, youth, and vulnerable communities,” said Ethiopis Tafara, Vice President, Chief Risk, Legal & Sustainability Officer and Partnerships at MIGA. “The combined efforts are what we need to grow the pie of development projects, support a sustained recovery, and build for the future.”
Forging partnerships is a central tenet of World Bank’s mission to maximize the impact on people. On Aug. 31, World Bank President Ajay Banga and IDB President Ilan Goldfajn signed a memorandum of understanding at IDB headquarters in Washington, D.C. to boost support for net-zero-deforestation efforts in the Amazon, strengthen the Caribbean’s resilience to natural disasters, and bridge the digital-access gap across Latin America and the Caribbean. The agreement exemplifies WB’s commitment to action.
In June 2023, Banga and Goldfajn traveled to Latin America and the Caribbean and emphasized strengthening ties and identifying new, deeper ways for the two development institutions to work together.
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Elizabeth Howton, (202) 458-5922, email@example.com
For more information, please visit: https://www.miga.org