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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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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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Press Release

MIGA Signs 1,000th Project

Also available in: French
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WASHINGTON, April 5, 2023The Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group has issued guarantees of up to €516 million (about $550 million) to Standard Chartered Bank of the United Kingdom, Crédit Agricole Corporate and Investment Bank of France, and JPMorgan Chase Bank N.A., London Branch of the United States to cover their loans to the government of Senegal, for a period of up to 18 years, against the risk of non-payment.

The proceeds of the MIGA-backed loans will refinance debt contracted by the government to increase its shareholding from 10 percent to 40 percent in DP World Dakar SA. With this transaction, the government of Senegal aims to strengthen its strategic position in the sector as well as increasing its annual revenues through dividend payments.

The signing of this 1,000th project demonstrates MIGA’s commitment to its mission of supporting economic growth, reducing poverty, and improving people’s lives by mobilizing cross-border private investment into developing countries. In addition to insuring new investments, MIGA also covers investments to expand, modernize, improve or enhance existing projects.

“With our 1,000th project, MIGA is enabling the government of Senegal to pursue a key strategic priority by investing in its ports to develop a major commercial hub in the region,” said Hiroshi Matano, Executive Vice President of MIGA. “The financial and economic benefits of the project will lead to a stronger government budget that will contribute to the country’s post-COVID-19 recovery.”

Over the last 35 years, MIGA is proud to have supported projects that are financially and economically viable, environmentally sound, and consistent with a country’s development objectives. This project supporting the government of Senegal’s investment in the port of Dakar is the most recent example of MIGA in action.

Ports play a key role in Senegal’s economy and plans for future development of the country. With more than 700 kilometers of coastline, its position at the westernmost point of Africa and the Sahel gives Senegal a strategic advantage to become a regional hub linking Africa to the rest of the world. Located at the crossroads of several key maritime routes, the port of Dakar offers ships competitive navigation time in West Africa.

The port of Dakar also occupies a strategic and vital place in the Senegalese economy, being the main foreign trade gateway for Senegal, and a significant contributor to government revenues and gross domestic product. The port of Dakar also contributes to strengthening regional integration and trade facilitation within the West Africa region, with a significant portion of Mali’s imports passing through its facilities.

For these reasons, the government of Senegal has decided to increase its ownership in DP World Dakar SA, one of the operators of the port of Dakar’s container terminals, and one of future operators of the same at the new port of Ndayane to be built. Additional equity ownership in DP World Dakar will also bring the government’s share in the public-private partnership in line with the levels seen in others around the world considered to be of national, economic, and strategic importance.

The MIGA-covered loan facility is expected to decrease the present value of the total debt service of the facilities being refinanced. In addition, the reprofiling of debt service over a longer tenor is estimated to decrease debt service obligations in the near-term, providing more flexibility in the current challenging global financing conditions. Moreover, the additional dividends derived from the government’s increased shareholding in DP World Dakar are expected to lead to a positive return on investment for the government based on DP World Dakar’s historical performance and future outlook.

With this investment, the government of Senegal seeks to become a key partner for regional goods transshipments by further leveraging the strategic location of Dakar and contributing to the port’s growth. The government is also positioning itself to better contribute to the strategic decisions taken by DP World Dakar in relation to the future development of the port, while recognizing that control as well as the day-to-day operations will continue to fall under the company’s purview under the public-private partnership model.

Alper Kilic, Global Head of Project & Export Finance at Standard Chartered Bank, said: “We are delighted to be part of this landmark financing for the government of Senegal in partnership with MIGA. MIGA’s support for infrastructure investments in developing markets has been instrumental to help drive economic growth over the years. Standard Chartered Bank has been supporting its clients in Asia, Middle East and Africa for more than 160 years. We look forward to continuing our strong partnership with MIGA and facilitating the flow of the capital where it is needed most for many more years to come.”

About Standard Chartered

Standard Chartered is a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 64. Its purpose is to drive commerce and prosperity through our unique diversity, and its heritage and values are expressed in its brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges. For more stories and expert opinions, please visit Insights at sc.com.

About MIGA

MIGA was created in 1988 as a member of the World Bank Group 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 $70 billion in guarantees across 122 developing countries in support of 1,000 projects. 

Contacts:

In Washington: 

Elizabeth Howton, (202) 458-5922, ehowton@worldbankgroup.org

For more information, please visit: https://www.miga.org

Stay updated via Twitter: https://twitter.com/MIGA

Follow us on LinkedIn: https://www.linkedin.com/company/wb-miga 

Also available in: French
twitteremail