Established in 1988, the Multilateral Investment Guarantee Agency (MIGA) is an international financial institution, a member of the World Bank Group that encourages and mobilizes foreign direct investment (FDI) into developing economies.

MIGA is one of the world’s largest sources of investment insurance. It helps to mitigate risks usually associated with investing in developing countries, such as political violence, breach of contract, and currency inconvertibility. It reassures investors of their investment and gives them greater incentive to invest in new markets.

MIGA offers four types of insurance products, each designed to protect investors’ and project holders’ investments:

- Political Risk Insurance - Investment Guarantees - Credit Protection - Performance Security

Political Risk Insurance covers investments against losses resulting from war, terrorism, civil disturbances, currency inconvertibility, or transfer restriction, among other risks. Investment Guarantees are contracts where MIGA commits to reimburse investors for losses from non-commercial risks. Credit Protection is a form of guarantees which covers the repayment of the loan principal and interest for projects which are financed through a loan agreement. Performance Security covers the risk of default due to a failure to site up a project.

In addition to insurance, MIGA also provides services such as technical assistance, facilitation, and issue advocacy. Technical assistance aims to help projects be successful by providing expertise and advice. Facilitation refers to legal and regulatory assistance from MIGA. For example, MIGA can help when there are complications with land-titling and permits. Lastly, Issue Advocacy is MIGA’s support for economic reform and the private sector, which can, in turn, create the right environment for investment.

MIGA’s services are designed to attract and maintain foreign investment while protecting investors and host countries against political and economic risks. Overall, MIGA has enabled over $201.6 billion in foreign direct investment into developing countries since its inception in 1988. The agency continues to pave the way for greater economic reforms and investment opportunities in the world’s emerging markets.