Economic Tools Mapping: Multilateral Investment Guarantee Agency
Impediments to foreign direct investment are a key constraint for developing countries seeking economic growth and poverty reduction. For many developing countries, political risk is one of the most significant impediments within this category. The multilateral investment guarantee agency (MIGA) addresses this constraint by providing political risk insurance guarantees to private sector investors and lenders. This note describes how MIGA’s guarantees help investors obtain access to funding on improved terms. It also considers the range of countries where it invests and the allocation of its 600+ projects by industry sector.