Underscores Commitment to Boosting Private-Sector Investment in Sub-Saharan Africa
Washington, September 3, 2013 – Keiko Honda, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA)—the political risk insurance arm of the World Bank Group—is traveling to South Africa, Kenya, and Côte d’Ivoire on her first official trip as MIGA’s top executive. She arrived in South Africa on September 1st and then visits Kenya and Côte d’Ivoire, joined by Michel Wormser, Vice President and Chief Operating Officer. The team will meet with government officials, investors, and lenders to discuss how MIGA can boost private sector investment in sub-Saharan Africa through its investment guarantees.
MIGA recently posted its strongest results to date in sub-Saharan Africa, issuing $1.5 billion in guarantees covering investments in the agribusiness, energy, services, and water sectors this past fiscal year. “MIGA’s exposure in the region has more than doubled in the last three years,” said Honda. “We’ve made it clear that sub-Saharan Africa is a priority for us, and we intend to continue our support for investments that generate jobs and growth.”
In Kenya, MIGA is already playing an important role in helping the country deliver on its Least Cost Power Development Plan, which calls for an increase in the number of independent power producers and a more diversified energy mix. This year, MIGA provided $102.5 million in breach of contract cover to the Industrial and Commercial Bank of China and Standard Bank of South Africa for their long-term commercial financing to Triumph Power Generating Company Limited. MIGA’s support for Triumph is complemented by a a partial risk guarantee from the World Bank’s International Development Association. MIGA is also providing coverage for Thika Power Limited and Olkaria III, Kenya’s first geothermal independent power producer.
In addition to investments in power generation, MIGA is currently supporting projects in the agribusiness and services sector. The Agency’s gross exposure in Kenya is $252 million.
“Access to affordable and reliable energy is essential to lifting people out of poverty,” said Honda. “We’re pleased to support Kenya’s development goals and eager to discuss how we can help bring foreign direct investment into the country for high-impact projects that create jobs and improve Kenya’s competitiveness. ”