Sub-Saharan Africa, home to more than 1 billion people, half of whom will be under 25 years old by 2050, is a diverse continent offering human and natural resources that have the potential to yield inclusive growth and eradicate poverty in the region. Economic growth in Sub-Saharan Africa (SSA) slowed to 3.6% in 2022, from 4.1% in 2021; and economic activity in the region is projected to further slow down to 3.1% in 2023.
MIGA is committed to its support to Sub-Saharan Africa and helping promote sustainable development across the region.
In FY23, MIGA supported 14 projects in the region across 11 countries and issued guarantees totaling $1.9 billion. This included several highly impactful projects such as the Wakanda Telecom Project in Ethiopia, where MIGA provided a $1 billion guarantee for political risk insurance cover against the equity investment in the first privately owned telecommunications network in the country. Other notable projects in the region included two non-honoring guarantees in Botswana and Senegal, a railway project in Gabon, a road project in Kenya and several other smaller PRI projects in Democratic Republic of Congo, Ethiopia, Gabon, Guinea, Kenya, Madagascar, Namibia and South Africa.
EXAMPLES OF MIGA-SUPPORTED PROJECTS IN Sub-Saharan Africa
In 2023, MIGA issued guarantees of up to €516 million (about $550 million) to Standard Chartered Bank of the United Kingdom, Crédit Agricole Corporate and Investment Bank of France, and JPMorgan Chase Bank N.A., London Branch of the United States to cover their loans to the government of Senegal, for a period of up to 18 years, against the risk of non-payment.
The signing of this 1,000th project demonstrates MIGA’s commitment to its mission of supporting economic growth, reducing poverty, and improving people’s lives by mobilizing cross-border private investment into developing countries.
In 2023, MIGA issued a guarantee of $5.67 million to cover Kube Energy’s equity and debt investments in Kube Energy Somalia LLC for a period of up to 15 years against the risks of expropriation and war and civil disturbance. This is MIGA’s first project in Somalia, which became a MIGA member country in March 2020.
MIGA’s first project in Somalia shows that renewable energy investment can be achieved in challenging environments.
In FY22, MIGA issued guarantees covering a $200 million investment into companies providing digital financial services under the Airtel Money brand in 12 African countries. MIGA’s guarantees will enhance access to mobile money services in 12 SSA countries, increasing financial inclusion for lower-income, rural, and female consumers.
The Silverlands Fund, backed by MIGA, has been supporting agribusiness investments in 13 countries throughout Sub-Saharan Africa. Over the past few years, the Silverlands Fund has reached half a million farmers by investing in agribusinesses that work in fruit, soy, poultry and other value chains, contributing to improved food security and self-sustainability for agricultural production in the region.