The global need for power is enormous. Today, more than one billion people lack access to electricity. Rapid industrialization coupled with the increased buying power of local citizens is further fueling the demand. Moreover, as emerging markets become locations of choice for companies in search of lower-cost operations, demand for power in these nations is skyrocketing.

As with cross-border investments in many sectors, there are noncommercial risks associated with manufacturing projects in emerging economies. Despite the best intentions and thorough planning, unforeseen events can disrupt a project.MIGA guarantees are well-suited to mitigate the noncommercial risks associated with manufacturing projects in emerging markets, thereby lowering the cost of capital.

Lack of long-term local funding has always been a major constraint on growth in developing countries. Local banks normally have access to short-term funding through local deposits, but long-term funds tend to be scarce and international banks are less inclined to take on longer-term risks due to the inherent instabilities in some emerging economies and the need to prudently manage their country limits.

While worldwide demand for foodstuffs is high and investment needs are great, the fact remains that agricultural investments are risky business— especially in the developing world. MIGA guarantees are well-suited to mitigating the noncommercial risks of agribusiness investments, thereby lowering the cost of capital and helping secure financing.

MIGA is planning to issue guarantees for investments into the pre-construction study phase of a high-grade, open-pit iron ore mine in Mount Nimba, southeastern Guinea, along with the development of a transportation route for the iron ore through neighboring Liberia.

MIGA hosted its 6th Annual Gender Leadership Award virtual event, titled ‘Women Financing a Resilient Asia’, on March 8, 2021. Our event included a panel discussion on topics such as gender equality, COVID-19 responses, climate action, insurance and derisking, etc. Watch the event on World Bank Live and follow it on social media with #IWD2021 and #GenderLeadershipAward.