World Bank's MIGA Holds Talks in Gabon

World Bank's MIGA Holds Talks in Gabon:  Agency aims to bolster foreign investment

LIBREVILLE, March 21, 2002 — Representatives of the Multilateral Investment Guarantee Agency, a member of the World Bank Group, are in Gabon for three days of talks with government officials and investors.

Leading the MIGA delegation is Vice President for Underwriting Roger Pruneau, who met today with Vice President Didjob Divungi di Ndingue to examine ways the agency can help catalyze foreign investment into Gabon, once the nation finalizes its membership into MIGA.

Meetings were also held with Vice Prime Minister Emmanuel Ondo Methogo and key ministers in charge of priority sectors.

Pruneau highlighted Gabon's potential as an investment destination, and underscored the role MIGA can play in encouraging businesses to invest in the country's underdeveloped sectors to help the loosen the reliance on volatile commodities.

"Once Gabon becomes a full member of MIGA, we will be able to provide noncommercial risk guarantees for investments going into and out of the country, as well as technical assistance on how to attract investment," Pruneau said.

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.

"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.

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.

The MIGA delegation will be in Gabon from March 20-23, 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 seminar, organized jointly with Citibank, is planned for Friday, March 22, in Libreville.

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