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International Finance Corporation & MIGA

Hemant Singh

The World Bank Group (WBG) is a family of five international organizations that are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).

World Bank established IFC in July 1956. This corporation provides loans to private industries for developing nations without any government guarantee and also promotes the additional capital investment in these countries, thus the main work of IFC is to ensure the financial support to private sector in developing countries. In the end of March 2019 its membership was 184.

Objectives of IFC are as follows:

i. To provide loans to private sector.

ii. To co-ordinate capital and management.

iii. To include capitalist countries to invest in developing countries.

IFC’s offerings are designed to meet the specific needs of our clients in different industries, with a special focus on infrastructure, manufacturing, agribusiness, services, and financial markets.

Our financial products enable companies to manage risk and broaden their access to foreign and domestic capital markets. Our advice helps unlock private sector investment, which is essential for expanding businesses, creating jobs, and growing economies.

We work with the private sector to encourage entrepreneurship and build sustainable businesses—advising them on a wide range of issues, including environmental, social and governance standards, energy and resource efficiency, and supply chains. We help expand access to critical finance for individuals and micro, small, and medium enterprises through our work with financial intermediary clients.

In fiscal year 2015, our long-term investments in developing countries totaled $17.7 billion, a 17 percent increase over the previous year. More than a third of that amount—over $7 billion—was mobilized from other investors.

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Multilateral Investment Guarantee Agency (MIGA)

MIGA is a member of world group. It came into existence on April 1988. Its mission is to promote foreign direct investment (FDI) in developing countries to help support economic growth, reduce poverty and improve the people’s life. MIGA’s operational strategy plays to its foremost strength in the market place- attracting investors and private insurance players into difficult operating environment.

MIGA provides political risk insurance guarantees to private sector investors and lenders. MIGA’s guarantees protect investments against-non-commercial risks and can help investors obtain access to funding sources with improved financial terms and conditions.

MIGA’s strength is derived from its standing as a member of the World Bank Group and structure as an international organization with its shareholders including most countries of the world. Since its inception in 1988, MIGA has issued more than $28 billion in political risk insurance for projects in a wide variety of sectors, covering all regions of the world.

MIGA also conduct research and share knowledge as part of its mandate to support foreign direct investment into emerging markets. This underscores its position as a thought leader and source of pertinent information for the political risk insurance community. MIGA only supports investments that are developmentally sound and meet the social and environmental standards.

MIGA applies a comprehensive set of social and environmental standard to all projects and offers expertise in working with investors to ensure to compliance to these standards. MIGA’s memberships 155 developing countries and 25 developed countries.

Shareholders of MIGA

A Council of Governors and a Board of Directors representing our member countries guide the programs and activities of MIGA. MIGA’s corporate powers are vested in the Council of Governors, which delegates most of its powers to a 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, where they review and decide on investment projects and oversee general management policies.

Domain of MIGA

MIGA people have extensive experience in political risk insurance, with backgrounds including banking and capital markets, environmental and social sustainability, project finance and sector specialties, and international law and dispute settlement.

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