MIGA in Africa: Scaling up to Meet the Challenge

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MIGA in Africa Scaling up to Meet the Challenge
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The World Bank Group
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The MIGA Package
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MIGAGuarantees Program
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MIGAS GUARANTEE PROGRAMTerms and Conditions

• EligibilityNew cross-border investments with a
  minimum tenor of three years between member
  countries (currently 154 members)
• TenorsCoverage up to 15 years
• AmountsUp to 200 million directly (greater
  amounts possible through coinsurance and
  syndication) equity covered up to 90 debt up
  to 95
• PricingPremiums determined by country and
  project risk taken together Effective prices
  vary depending on the type of investment and
  industry sector, and are in line with industry
  norms

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MIGAS GUARANTEE PROGRAMEligible Structures
Commercial Bank
Investor
Foreign currency Loan
Equity
Loan Guarantee
Country A
Country B
Commercial Bank
Local Investor
Joint Venture
Local Currency Loan
Equity
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Africa Guarantees Portfolio

• Total issuance Over 1.3 billion in 24 countries
• FDI facilitated 5.3 billion (est.)
• FY99 8 of portfolio FY03 19
• FY99-03 58 projects covered

Gross exposure ( million)
952
788
621
524
294
3
FY99
FY00
FY01
FY03
FY02
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Africa Guarantees Portfolio gross exposure,
percent, FY03
by sector
Manufacturing
Infrastructure
Mining
Oil Gas
by country
Tourism
Services
Financial
Nigeria
Agribusiness
Uganda
Tanzania
10
20
30
40
0
Mozambique
Mali
Kenya
Guinea
Mauritania
Swaziland
Others
0
5
10
15
20
25
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