Downtown Africa
The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, and DEG, the private sector-focused subsidiary of KfW, have agreed to cooperate more closely to leverage each other’s toolkits and structure comprehensive solutions or product applications to de-risk and support joint projects in emerging economies worldwide.
Management of the two institutions exchanged letters today that commit to periodic consultations and systematic engagement to help develop a pipeline of investable projects and deepen ties between the two institutions. This signals the value that DEG and MIGA management place on the effort necessary to identify opportunities and to structure solutions.
“There are projects that require each of us to assume a distinct and unique role that allows for the project to be ‘de-risked’ and go forward,” said Ethiopis Tafara, Vice President and Chief Risk, Legal & Sustainability Officer and Partnerships, MIGA. “This kind of collaboration requires a measure of trust which can only be built through regular engagement. With our strengthened partnership, we aim to build a pipeline of new projects that ultimately support a sustained recovery from the pandemic and help us build back better.”
CEO of DEG, Roland Siller said, “It is paramount to find good partners and together enable financial solutions that will not happen otherwise. The objective of our collaboration is to grow the pie of investable projects and jointly strengthen our offer for potential private sector investors. The intent is to foster new approaches for projects, structures or products that can be scaled and replicated.”
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued nearly US$65 billion in guarantees across 119 developing countries.
Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a subsidiary of KfW and was founded in 1962 in Cologne on the initiative of the German federal government as the “German Association for Economic Cooperation”. Its mandate is financing private-sector companies and assisting them as they move into developing countries. As a development finance institution, DEG has more than half a century of experience in cooperation with the private sector and has successfully partnered with hundreds of companies. DEG’s current portfolio amounts to about EUR 9 billion, financing investments in around 80 countries.
This article was from a press release distributed at www.miga.org. You can start earning money by becoming our Independent Reporter or Contributor. Contact us at IR@downtownafrica.com
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