World Bank's MIGA Aims to Catalyze Private Investment in Cameroon

World Bank's MIGA Aims to Catalyze Private Investment in Cameroon

YAOUNDE, March 18, 2002 — Representatives of the Multilateral Investment Guarantee Agency, a member of the World Bank Group, met today with Louis Marie Abogo Nkono, Secretary General of the Prime Minister's office, on behalf of Prime Minister Peter Mafany Musange, to examine ways the agency can help Cameroon increase foreign direct investment, a key driver of economic growth.

Meetings were also held with Martin Okouda, Minister of Investments, and several other Cabinet members in charge of priority sectors.

Leading the MIGA delegation, Vice President for Underwriting Roger Pruneau said Cameroon has great potential as an investment destination, and that MIGA is ready to help the country capitalize on that potential.

"Cameroon has made encouraging economic progress over the past five years, from privatization to banking sector reform, which has helped create an environment that's more conducive to foreign investment," Pruneau said. "Our goal is to help Cameroon take its economic development even farther by doing our part to encourage investors to bring their business here."

MIGA provides guarantee coverage (insurance) against non-commercial risks such as transfer restriction, breach of contract, expropriation, and war and civil disturbance, offering protection to private investors who find business opportunities in Africa attractive but may be concerned about political risks.

Since its inception in 1988, MIGA has underwritten some 70 guarantees for projects in Africa, facilitating about $4 billion in foreign direct investment. The region as a whole currently represents about 12 percent of MIGA's gross guarantees portfolio. Projects covered range from a gold mine in Tanzania to a construction project in Angola. One recent guarantee in neighboring Benin provided $8 million in coverage for a mobile phone project that aims to double phone access available to that country's citizens.

Pruneau and his team took the opportunity of today's visit to discuss MIGA's other services, including its help in equipping investment promotion intermediaries with techniques to strengthen their capacity to attract foreign direct investment. An example of such assistance was the recent design and installation of new technology to enhance the FDI promotion capabilities of Tanzania, Ghana, Mozambique, Zambia and Senegal, among others.

Pruneau and his team will be in Cameroon from March 16-20, 2002. They plan to meet with other government officials and investors to talk about the value of political risk insurance for investments in the region and elsewhere. A special investor presentation is planned for Tuesday, March 19, in Douala.

"MIGA's guarantee program allays investor concerns about the safety of their investments and facilitates foreign direct investment into countries-to reduce poverty and improve people's lives," said Pruneau.

For information:
Angela Gentile, agentile@worldbank.org,
t. 202.473.3509