Multilateral Investment Guarantee Agency (MIGA): Overview and History

Multilateral Investment Guarantee Agency (MIGA): Overview and History

What is MIGA?
MIGA is a member of the World Bank Group that promotes foreign direct investment (FDI) into developing countries by providing political risk insurance and credit enhancement. Its mission is to encourage investment that supports economic growth, poverty reduction, and development outcomes.

Key takeaways
* MIGA provides political and economic risk insurance to promote FDI in developing countries.
* It is part of the World Bank Group and brings multilateral backing to risk coverage.
* MIGA supports governments, corporations, financial institutions, and state-owned enterprises to mobilize investment in challenging markets.

History
* The idea for a multilateral political risk insurer was endorsed by the World Bank in the mid-1980s; MIGA was established in 1988 with initial capital of $1 billion and 29 founding members.
* Membership expanded rapidly; today MIGA comprises over 180 member states from both developing and industrialized countries.
* By the late 1990s and into the 2000s, the agency had grown its guarantee portfolio substantially and used guarantees to help stabilize post-crisis and transition economies.

What MIGA does
MIGA’s core functions include:
* Political risk insurance and guarantees that protect investors and lenders against non-commercial risks, such as:
* Expropriation or nationalization
* Currency inconvertibility and transfer restrictions
* War, civil disturbance, and political violence
* Breach of contract or failure of a sovereign to honor obligations
* Advisory services to help governments design investment-friendly policies, regulations, and institutional frameworks.
* Support for projects through licensing, franchising, technology transfer facilitation, and structuring to attract private capital.
* Participation in and backing of specific international projects to catalyze private financing and support development objectives.

Eligibility
Eligible parties typically include:
* Private corporations and financial institutions incorporated in or majority-owned by nationals of a MIGA member state.
* State-owned enterprises, when investments are undertaken on a commercial basis.
* Nonprofit organizations engaged in qualifying commercial investments.
Applications must meet MIGA’s underwriting criteria and development impact assessments.

Risks covered
MIGA covers non-commercial, sovereign-related risks including:
* Political violence (war, civil unrest)
* Expropriation or nationalization
* Currency inconvertibility/transfer restrictions
* Breach of contract or failure by a government to meet obligations

Leadership and expertise
MIGA’s staff and management combine experience in political risk insurance, banking and capital markets, project finance, environmental and social sustainability, and international law and dispute settlement. Senior leadership includes executive and vice-presidential roles responsible for operations, risk management, legal affairs, and sector programs.

Example of MIGA-backed projects
MIGA supports infrastructure and climate-aligned investments. For example, it has backed large loans to national railway modernization programs aimed at improving transport reliability, expanding electric fleets, and supporting low-carbon initiatives—projects that both catalyze private finance and advance national development goals.

Conclusion
By offering multilateral political risk insurance and advisory services, MIGA reduces barriers to investment in higher-risk markets and helps channel private capital toward projects that promote economic growth and poverty reduction. Its guarantees and technical support are tools to increase investor confidence and align private investment with development priorities.