Addis Fortune
Tuesday, January 30, 2007
MIGA was created in 1988 as a member of the World Bank Group in order to promote foreign direct investments to emerging markets; it also offers a political risk guarantee to international investors and lenders.
The agency places a special focus on supporting investments in IDA-eligible, conflict-affected, and sub-Saharan African countries, as well as infrastructure and investments between developing countries, according to a brochure the Agency distributes.
MIGA also provides dispute mediation services to its clients; it is this service that has given name in
As recently as April 2005, MIGA had successfully brokered a deal between French and Greek nationals as well as Sufian Ahmed, minister of Finance and Economic Development, for the compensations of nationalized tannery, shoe factory, and housing. A group of Norwegian nationals in the former Mosvold companies, which included woodworking, furniture, and retail stores, were also compensated for their losses, due to
More importantly, however, MIGA played a role in mediating Nestle to its six million dollar claim for a factory nationalized in 1975.
It is with this Agency that
The membership enables eligible foreign companies seeking to invest in Djibouti to receive MIGA's guarantee coverage, which protects investments against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance (including terrorism), according to a press release issued by the Agency last week.
"We are delighted that
Since its inception, MIGA has issued more than 850 guarantees for projects in 95 developing countries, totaling more than 16 billion dollars in coverage. MIGA's gross exposure stands close to 4.7 billion dollars.
Source: Addis Fortune, Jan 30, 2007