MIGA Political Risk Guarantee
In Partnership with S.E.S. (officially accredited MIGA finder)
MIGA is a World Bank institution providing insurance against political risk to investors (see below extract from official MIGA documents):
MIGA’s guarantee program helps reduce the non-commercial risks associated with foreign direct investment. New cross-border investments, multi-country projects, as well as expansions and privatizations of existing projects, are eligible for coverage. MIGA protects against:
– Currency inconvertibility and transfer restrictions—losses resulting from the inability to convert local currency and transfer it outside the country.
– War and civil disturbance, including terrorism—losses resulting from physical damage to tangible assets or from a substantial interruption of business.
– Expropriation - losses caused by actions depriving an investor of ownership or control.
– Breach of contract - losses resulting from repudiation or breach of contract following denial of justice by the host government.
The agency’s top-rated insurance has many other benefits, allowing investors and lenders to venture into new markets with confidence and achieve investment grade ratings or higher for emerging market securities. Financial institutions also benefit by being able to leverage their country limits and thus reduce country risk provisioning and transaction costs.
MIGA has selected 20 companies/individuals worldwide only to identify projects which are eligible for such investments. Altai Consulting is a partner for one of those companies, Strategies Evaluation Solutions (S.E.S.), led by Jean Mazurelle, former World Bank country director in various African & Asian countries. Our role is to support S.E.S. in identifying companies with strong business models which could be eligible for insurance.
To know more about MIGA: www.miga.org