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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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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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€600 million
Financial Services
Summary of Proposed Guarantee

Project Description

This summary covers an application made to cover a proposed commercial lending facility of €350 million (net principal) to Banque Ouest Africaine de Developpement (BOAD) to be provided by : Societe Generale, HSBC Bank plc, and other lender(s) yet to be identified. MIGA’s coverage has been sought in relation to a Non-Honoring of Sovereign Financial Obligations by a Regional Development Bank (NHFO-RDB) guarantee for up to €600 million and a tenor of up to 15 years (the Project).

BOAD is the common development finance institution of the 8 member states of West African Economic and Monetary Union (WAEMU). Its primary objective is to promote balanced development of its member states and to foster economic integration within West Africa by financing priority development projects

The MIGA-guaranteed loan will support BOAD’s lending operations towards climate and sustainable projects in BOAD’s 8 member countries in priority sectors including Climate Smart Agriculture, Renewable Energy, Green Cities and Buildings, and Infrastructure. The MIGA guarantee would allow BOAD to attract competitive long-term financing from international lenders, ensure the unfolding of strategic projects in BOAD’s member countries and helping BOAD achieve its development bank’s mandate and mission to enforce the balanced development of its member countries. 

Environmental Categorization

The MIGA project will support direct lending for projects in priority sectors including renewable energy, agriculture, infrastructure housing/real estate, healthcare and education. These projects could have significant E&S risks impacts that are unprecedented and irreversible; as such, the MIGA project has been categorized as FI-1 in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013). 

The main E&S aspects of this project relate to BOAD’s ability to identify, assess, and manage the E&S risks and impacts associated with its lending activities and the management of labor matters at BOAD. MIGA analyzed BOAD’s portfolio for types of transactions, tenors, industry sectors, and exposure to MIGA’s Exclusion List. MIGA also analyzed BOAD’s E&S risk management procedures for lending activities in line with the requirements of Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts (PS1), and BOAD’s labor practices in line with the requirements of Performance Standard 2: Labor and Working Conditions (PS2). 

For the purposes of the MIGA guarantee, BOAD will be required to assess transactions against: (i) MIGA Exclusion List; (ii) applicable E&S laws and regulations in the respective countries where projects are located; and (iii) MIGA Performance Standards. 

As of December 2023, BOAD’s portfolio included the two main segments – sovereign loans, 75% and non-sovereign loans, 25% – across the eight member states. The main sectors supported include transportation and digital infrastructure (41%), energy and natural resources (20%), agriculture and food security (12%), financial services (12%), health and education (10%), and housing and real estate (5%). Coal-related projects and oil and gas projects will not be covered by the MIGA guarantee[1]. BOAD has no exposure to activities on the MIGA Exclusion List.

In relation to E&S risk management, BOAD has an E&S team responsible for E&S risk management, climate finance and gender.  BOAD implements an E&S risk management framework for identifying, assessing, and managing E&S risk and impacts associated with its lending activities.  The framework includes nine environmental and social safeguards that are similar to the MIGA Performance Standards (PS). The safeguards cover: (i) E&S management systems; (ii) labor; (iii) resource efficiency and pollution management; (iv) community health, safety, and security; (v) land acquisition: (vi) biodiversity; (vii) vulnerable and disadvantaged people; (viii) cultural heritage and (ix) stakeholder engagement.  For the MIGA project, BOAD will be required to apply the PSs.

BOAD’s framework also includes a detailed procedure for assessing E&S issues from transaction origination to monitoring.  E&S risks and impacts are assessed during due diligence, and where applicable E&S action plans are developed to address identified gaps and E&S conditions of lending are also incorporated into facility agreements.  The implementation of action plans as well as compliance with E&S conditions is monitored after facility disbursement. 

BOAD has emergency response procedures which are in line with the requirements of PS1. BOAD also has labor policies and procedures that address terms of employment, recruitment, renumeration, benefits, grievance management and non-discrimination. 

For the proposed guarantee, BOAD will be required to report annually to MIGA regarding the project portfolio, the implementation of the E&S procedures as well as labor practices.

Development Impact

The proposed Project is expected to contribute to the development of WAEMU’s economies, given the nature of BOAD’s purpose and mission. The funds provided by MIGA’s facility at improved financing terms will be used for projects in high-impact sectors aligned with BOAD’s and national strategies. As such, the Project is aligned with the objectives set in the country strategies of regional member countries, particularly the priorities on infrastructure development, regional integration, and private sector development. The Project will also bring climate benefits as part of the proceeds of the MIGA-guaranteed facility will be used to support climate finance projects. In addition, the availability of affordable financing through MIGA’s supported facility has potential demonstration effects related to demonstrating the viability of project finance lending (including climate projects) in countries where there are still significant investment barriers for private and foreign investors.

The proposed Project is consistent with MIGA’s Strategy and Business Outlook FY 24-26, as it will promote and encourage the flow of foreign investments to develop projects in IDA and FCS countries and contribute to addressing the global challenge of climate change in BOAD’s member countries. 


[1] BOAD’s Climate Policy (February 2023) details the bank’s commitment to climate mainstreaming, including climate risk management, climate finance and decarbonization. 


MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring direct investment clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. MIGA support to Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations as per the requirements of Performance Standards 1. 

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.

Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:

Compliance Advisor/Ombudsman

International Finance Corporation

2121 Pennsylvania Avenue NW

Room F11K-232

Washington, DC 20433 USA

Tel: 1 202 458 1973

Fax: 1 202 522 7400