The Multilateral Investment Guarantee Agency has adopted broader criteria for determining investments that are eligible for its support in a bid to significantly increase the number of projects insured by the agency.
Following the approval of changes to MIGA’s rules, the agency can now provide guarantees to investments deemed economically and financially viable, environment-friendly and consistent with the development priorities and objectives of countries where projects will be implemented.
The reforms also allow MIGA to provide political risk insurance to new investors that have acquired existing investments or ventures. Political risk insurance is considered central to efforts aimed at encouraging foreign direct investments in the developing world, particularly in Africa, as Devex has reported.
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In addition to broader requirements and provision of political risk insurance, the revamped convention includes simplified application procedures that aim to improve MIGA’s efficiency.
“These changes significantly enhance MIGA’s development impact and our ability to deliver on our mission of encouraging foreign direct investment that improves people’s lives,” said Izumi Kobayashi, the agency’s executive vice president, in a press release. “I’m grateful for the support of our members and look forward to supporting more investments that will benefit from MIGA’s risk-mitigation instruments.”
These recent changes to MIGA’s rules were the first since the agency was created in 1988.