MIGA, Arab Fund to Accelerate Investments in MENA
WASHINGTON, October 28, 2024 – The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantees Platform, and the Arab Fund for Economic and Social Development (AFESD), a multilateral financial institution headquartered in Kuwait, signed an agreement to cooperate and collaborate to promote foreign direct investment in the 22 Arab Fund member countries.
The agreement, signed during the World Bank-IMF Annual Meetings in Washington, D.C., allows MIGA and AFESD to combine their financial products to provide guarantees for specific projects to private sector investors, lenders, and both sovereign and sub-sovereign entities.
MIGA’s joint effort with AFESD aims to identify potential investors, which will enable its expansion in the Middle East and North Africa (MENA) region. Some of the 22 member countries of AFESD do not have de-risking instruments, and this agreement will fill the gap by increasing the bankability of potential projects. Of the 22 member countries, Sudan, Mauritania, Comoros, Djibouti, Somalia, Syria, and Yemen are IDA countries.
“We are excited to collaborate with the AFESD to provide guarantees in its 22 member countries in the MENA region,” said Hiroshi Matano, MIGA Executive Vice President. “With the newly configured WBG Guarantees Platform we are well positioned to scale up our support for countries that urgently need de-risking instruments to attract more foreign investment.”
The three-year agreement establishes a framework for scaling partnership models. Both organizations will consult and conduct joint due diligence and project preparation activities, maximizing cost efficiencies and eliminating duplications.
“We are proud to partner with MIGA in supporting the sustainable economic growth of our member countries,” said Bader Al Saad, Director General and Chairman of the Board of Directors of AFESD. “This agreement will enhance our ability to enable our member countries to secure much-needed development finance by providing stronger financial guarantees, particularly in regions where de-risking tools are not readily available. By working together, we can significantly improve the bankability of projects across the Arab countries, ultimately driving greater development and prosperity for the people of the region."
The partnership between MIGA and the AFESD will complement their strategies to enhance private sector financing.
About the Arab Fund for Economic and Social Development
The Arab Fund for Economic and Social Development (AFESD) is a regional pan-Arab financial institution established in 1968 with the mission of fostering economic and social development across its 22 member countries. Headquartered in Kuwait, AFESD provides financing for projects that aim to improve infrastructure, stimulate economic growth, and enhance living standards in the Arab world. Through grants, loans, and technical assistance, AFESD supports initiatives in sectors such as water, energy, transportation, health, and education, contributing to the sustainable development of the region. For more information about AFESD, please visit: https://www.arabfund.org/
About World Bank Group Guarantees
Initiated in 2024, World Bank Group Guarantees consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the WBG’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
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Contact:
In Washington: Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org