MIGA is the acronym of Multilateral Investment Guarantee Agency (MIGA)


In today’s globalized world, foreign investment plays a crucial role in driving economic growth and development. However, investing in developing countries can sometimes involve risks that deter potential investors. To address these concerns, the Multilateral Investment Guarantee Agency (MIGA) was established. In this article, we will explore the functions, benefits, and impact of MIGA on foreign direct investment (FDI) and developing nations.


What is the Multilateral Investment Guarantee Agency (MIGA)?

MIGA is an international financial institution that operates as a member of the World Bank Group. Its primary purpose is to promote and facilitate foreign direct investment in developing countries by providing guarantees against political risks. These risks include issues such as expropriation, breach of contract, currency transfer restrictions, and war or civil disturbance.

History and Purpose of MIGA

MIGA was established in 1988 and has since played a vital role in attracting private investments to developing countries. It was created with the aim of promoting economic growth, reducing poverty, and improving living standards by encouraging the flow of capital to areas that need it the most. MIGA’s focus on political risk mitigation sets it apart from other financial institutions.

How does MIGA work?

MIGA operates by offering guarantees to investors and lenders involved in eligible projects in developing countries. These guarantees provide protection against losses resulting from non-commercial risks, such as political events or government actions that may adversely affect investments. By providing this insurance, MIGA aims to increase investor confidence and mobilize private sector funds for development projects.

MIGA’s Role in Promoting Foreign Direct Investment (FDI)

MIGA plays a significant role in promoting FDI in developing countries by addressing concerns related to political and non-commercial risks. The agency’s guarantees help attract investors who may otherwise be hesitant to invest in regions with uncertain or unstable political environments. MIGA’s presence enhances the credibility and stability of investment projects, making them more attractive to both domestic and foreign investors.

Benefits of MIGA’s guarantee and insurance programs

MIGA’s guarantee and insurance programs offer several benefits to investors and project sponsors. Firstly, they provide protection against non-commercial risks, giving investors confidence and stability. This, in turn, attracts more investment and fosters economic growth. Secondly, MIGA’s support can help mobilize additional financing from commercial lenders who may be hesitant to invest in higher-risk environments. Lastly, MIGA’s involvement often improves the overall project’s social and environmental standards, promoting sustainable development.

Case studies showcasing MIGA’s impact

MIGA has played a significant role in numerous successful projects worldwide. One notable example is the Azito Power Plant in Côte d’Ivoire, where MIGA provided political risk insurance to encourage private sector investment. The project helped increase the country’s power generation capacity and reduce reliance on fossil fuels. Another example is the Changuinola hydroelectric project in Panama, where MIGA’s guarantees supported the development of renewable energy infrastructure, contributing to the country’s sustainable development goals.

MIGA’s role in promoting sustainable development

Sustainable development is a key focus for MIGA. The agency promotes environmentally and socially responsible investment practices by requiring adherence to rigorous environmental and social standards. MIGA’s involvement often encourages project sponsors to adopt best practices in areas such as community engagement, labor rights, and environmental protection. By doing so, MIGA ensures that investments contribute to the long-term well-being of the host communities and the environment.

Collaborations and partnerships with other organizations

MIGA collaborates closely with other organizations, including regional development banks, national investment promotion agencies, and international financial institutions. These partnerships enhance MIGA’s effectiveness in mobilizing investment and promoting sustainable development. By working together, these institutions can leverage their expertise, resources, and networks to create a more conducive investment environment globally.

Formation 1988
Type Development finance institution
Legal status
Purpose Political risk insurance, foreign direct investment
Headquarters Washington, D.C.
Membership 180 countries
Executive Vice President
Keiko Honda
Parent organization
World Bank Group
Website miga.org

The Multilateral Investment Guarantee Agency (MIGA) provides guarantees against losses caused by non-commercial risks to investors in developing countries.

MIGA is a member of the World Bank Group. Our mission is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people’s lives.
The Multilateral Investment Guarantee Agency (MIGA) is a member organization of the World Bank Group that which insuring political risk. It was established to promote foreign direct advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments. And Investment into developing countries of the world.
MIGA was founded in 1988 with a capital base of $1 billion and its headquarter is in Washington, DC. 175 member countries comprise MIGA’s shareholders.

MIGA has wide experience in political risk insurance, with background including banking and capital markets, environmental and social sustainability, project finance and sector specialties, and international laws and dispute settlements.

1. Providing political risk insurance guarantees to lenders and private sector investors. MIGA’s guarantees protect investments against-non-commercial risks and to help investors to obtain access to funding sources with improved financial terms and conditions. Since our inception in 1988, MIGA has issued more than $24 billion in political risk insurance for projects in a wide variety of sectors, covering all regions of the world.

2. To conduct research and share knowledge as part of our mandate to support foreign direct investment into emerging markets. This underscores our position as a thought leader and source of important information for the political risk insurance arena.

MIGA’s strategy to play  to the marketplace—attracting investors and private insurers into difficult operating environments. It is   insuring investments in the areas where the greatest difference
•    Countries eligible for backing from the International Development Association (the world’s poorest countries)
•    Conflict-affected environment
•    Complex deals in communications and extractive industries, especially those involving project finance and environmental and social considerations

A commission of Governors and a Board of Directors representing to member countries guide the programs and activities of MIGA. MIGA’s corporate powers are vested in the committee of Governors, which delegates most of its powers to Board of Directors. Voting power is weighted according to the share of capital each director represents. The directors meet regularly at the World Bank Group headquarters in Washington, DC, wherever they review and make a decision on investment projects and oversee general management policies.

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