MIGA Boosts Support for Foreign Investors in Sub-Saharan Africa
World Bank Group's Multilateral Investment Guarantee Agency Opens Regional Hub Office in Dakar, Senegal
DAKAR, Oct 27, 2016—With a rapidly growing portfolio in Sub-Saharan Africa currently amounting to US$4.4b, the World Bank Group's Multilateral Investment Guarantee Agency (MIGA) is further increasing its commitment to the continent by opening a new Regional Hub in Dakar, Senegal.
MIGA provides political risk insurance guarantees to private sector investors and lenders, protects investments against non-commercial risks, and helps investors obtain access to funding sources with improved financial terms and conditions.
MIGA's portfolio is currently growing most quickly in Africa among all regions, with over 40 percent of its guarantees being issued in the continent last fiscal year. And at present, almost a third of MIGA's global portfolio, consisting of 48 guarantee projects in 26 countries, are in Africa.
"There is no question that Africa is the region with the most potential for growth," said Keiko Honda, Executive Vice President and CEO of MIGA. "And in support of a global bid to unlock trillions of dollars towards development efforts, MIGA stands ready to strengthen private sector and foreign investor efforts in Africa."
In recent years, MIGA has provided guarantees in numerous sectors across the Region, including:
- Power generation: geothermal power in Kenya, hydropower in Angola and Ghana, and gas in Nigeria and Mozambique
- Urban transport and infrastructure: bridge construction in Cote d'Ivoire, upgrading port container terminals in Djibouti and Senegal
- Agriculture: agribusiness in Ethiopia and Zambia
"We are delighted that MIGA is opening a regional hub in Dakar," said Amadou Ba, Senegal's Minister of the Economy, Finance, and Planning. "We look forward to working more closely with MIGA as we did in the past by successfully attracting foreign investment in order to modernize the Port of Dakar. In addition, our position as an important gateway to Africa means more opportunities for both Senegal and Africa as a whole."
"By setting up a hub in Dakar, the entire World Bank Group can now work more closely with governments, investors and partners, while responding quickly to on-the-ground needs," added Louise Cord, Country Director for Senegal, Cape Verde, The Gambia, Guinea Bissau, and Mauritania. "It's a major step for MIGA and we are pleased to be strengthening our partnership in the field."
Looking ahead, the Regional Hub will focus its efforts on fragile states, and low-income countries. At present, MIGA's support in Sub-Saharan Africa to fragile states is $1.04b, and $3.11b for low-income countries. Helping governments attract foreign investment in climate change and renewable energy projects will also be a priority.
"MIGA's increased regional presence will help investors better leverage the range of World Bank Group products and services," said Vera Songwe, IFC Regional Director for West and Central Africa. "We look forward to working together to minimize investment risk and find more opportunities in African countries that most need private capital for development."
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