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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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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Our Products Dropdown Description

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Georgia

GeoCapital, Georgia

$2.06 million
Banking
Summary of Proposed Guarantee
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Project Description

This summary covers equity investments and shareholder loans by two American investors in GeoCapital, Georgia. The investors have applied for MIGA guarantees of US$2.06 million for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves investment in the creation and subsequent expansion of operations of GeoCapital Microfinance Organization LLC (GC), a fast-growing microfinance institution in Kutaisi (Imereti region), Georgia. GC offers small loans primarily to individuals but also to micro and small businesses. The purpose of the loans is to provide working capital for small businesses, house remodeling/repairs, education and medical expenses, and other general purposes. These loans are extended to the large population of households and businesses that have had no or limited access to credit.

Environmental Categorization

The project is a category C under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

In Georgia, access to finance is one of the main constraints for both companies and individuals. GC is helping a part of the “unbankable” population gain access to credit and loans for purposes ranging from home equity loans to medical, educational, and income-generation loans. As a large portion of these loans are extended to individuals, they enhance Georgians’ capacity to pay for social services.

GC’s loans carry a lower interest rate than other microfinance institutions operating in the country. This competition has resulted in other institutions’ reductions in their rates by an annual average of 20 percent—to the benefit of low-income consumers.

Since its establishment in 2011, GC has opened three branches and employs 30 people. The company has plans to open 17 new branches within the next three years.

The World Bank Group Country Partnership Strategy for Georgia recognizes that credit constraints are severe in the country, and the proposed project addresses this concern.  MIGA’s proposed support for this investment is also aligned with the Agency’s strategy of supporting investments into countries eligible for concessional lending from the International Development Association.

The project would be underwritten through MIGA’s Small Investment Program.

 

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