MIGA Results Underscore Vital Role of Private Sector in Development

MIGA Results Underscore Vital Role
of Private Sector in Development

World Bank Group Agency Announces Record New Business in Annual Report

Washington, September 22, 2014 – Sustained business growth for the Multilateral Investment Guarantee Agency (MIGA)—the political risk insurance and credit enhancement arm of the World Bank Group—highlights the private sector’s meaningful role in development, according to the Agency’s Executive Vice President and CEO, Keiko Honda.

“MIGA’s role has become increasingly valuable in helping achieve the World Bank Group’s goals of ending extreme poverty and boosting shared prosperity,” Honda said on the launch MIGA’s 2014 Annual Report.  “Increased demand for our political risk insurance and credit enhancement products facilitates the expansion of private investment into emerging markets that creates jobs, builds infrastructure, and expands economic growth.”

In fiscal year 2014, MIGA issued a record $3.2 billion in new guarantees—a 13 percent uptick over the previous year and the fourth consecutive year of record new issuance for the Agency. MIGA’s added value stems from its ability to mobilize private sector investment in environments that are often beyond the risk tolerance of commercial sources of capital.

MIGA’s growth occurs at an opportune moment: in fiscal year 2014, the World Bank Group adopted a joint strategy that underscored the essential role private sector investment plays working alongside public sector support to bear down on the most challenging development issues countries face.

At the end of the fiscal year, MIGA’s gross exposure was $12.4 billion. Fifty percent of the Agency’s new business was in IDA-eligible (the world’s poorest) countries; while 29 percent of new business was in fragile and conflict-affected countries.  MIGA’s new issuance underpins foreign direct investment that is expected to catalyze a further $2.6 billion in investment, create 7,600 jobs, and generate enough power for 26 million people in countries in need of energy.

Last year, MIGA-insured investments across the Agency’s portfolio created 52,100 jobs and provided 47 million people with access to power, 15 million people to transport, and 3.3 million people to clean water. MIGA clients extended $6.1 billion in new business loans and generated $1.6 billion in government revenues.

Access MIGA’s 2014 Annual Report at www.miga.org/2014annualreport

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MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433

MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org

Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org

Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org