PHOTO
LONDON - The World Bank's Multilateral Investment Guarantee Agency plans to more than double the guarantees it provides annually in Africa to $6.4 billion over the next 3-1/2 years, aiming to mobilise $23 billion in private capital for projects ranging from food and energy security to debt swaps.
MIGA has expanded its use of guarantees since the World Bank Group consolidated its guarantee operations under one umbrella nearly two years ago.
These have supported the Bank’s first debt swaps in Ivory Coast and Angola, as well as food security programmes in Kenya, over 100 energy projects, and bank lending in Ghana and Zambia.
The agency did not detail its project pipeline but said guarantees would continue to target energy grids, trade finance, digital connectivity, food security and support for local banks.
Instruments will include political risk insurance, credit enhancement, debt swaps and broader portfolio guarantees across multiple countries. Managing Director Tsutomu Yamamoto said the scaled-up guarantees would play a "critical role" in attracting investment, create jobs and "ultimately help to build robust and stable economies".
With major economies slashing aid budgets while seeking access to Africa's mineral resources, multilateral lenders are increasingly using guarantees to de-risk investments and stretch funding.
MIGA's broader goal is to boost the World Bank Group's global guarantee issuance to $20 billion each year by 2030.




















