MIGA, the Multilateral Investment Guarantee Agency, provides political risk insurance to foreign investors and lenders in developing countries against expropriation, currency inconvertibility, war and civil disturbance, and breach of contract by host governments. MIGA's AAA-rated guarantee can reduce the political risk premium on African investment projects by 200-400 basis points, making otherwise non-bankable deals viable. Africa accounts for approximately 35 percent of MIGA's $30 billion outstanding guarantee portfolio.
Fragile State Applications
MIGA is particularly active in fragile and conflict-affected states where private political risk insurance is unavailable or prohibitively expensive. Recent MIGA-guaranteed projects in Africa include telecom infrastructure in South Sudan, agri-processing in DRC, financial services expansion in Guinea, and power generation in Mozambique. The Conflict-Affected and Fragile Economies Facility (CAFE) provides concessional MIGA guarantee pricing for eligible fragile state investments. Investors developing projects in high-risk African markets can access MIGA application information and DFI contacts on intra-africa.com.
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