World Bank's MIGA Meets with Ivoirian Officials and Business Reps

World Bank's MIGA Meets with Ivoirian Officials and Business Reps:  Agency aims to bump up foreign investment

ABIDJAN, March 26, 2002 — Representatives of the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, are in Côte d'Ivoire for three days of meetings with government officials and investors.

The MIGA delegation, headed by Vice President for Underwriting Roger Pruneau, met today with President Laurent Gbagbo to examine ways the agency can help d'Ivoire encourage foreign investors to set up shop in the country. Meetings were also held with Prime Minister Affi N'Guessan, as well as key ministers in charge of priority sectors.

"The economic recovery of Côte d'Ivoire, the third largest economy in sub-Saharan Africa, would benefit the region as a whole," said Pruneau. "We at MIGA are keen to participate in the recovery, by mitigating the noncommercial risks to foreign investment through our guarantee program and by providing hands-on assistance on how to attract investment."

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 Côte d'Ivoire from March 23-27, 2002. They plan to meet with other government officials, including the ministers of infrastructure, mines and energy, and transportation, as well as with investors to talk about the value of political risk insurance for investments in the region and elsewhere. A special investor seminar is planned for Tuesday, March 26, in Abidjan.

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