The Multilateral Investment Guarantee Agency (MIGA)

The Multilateral Investment Guarantee Agency (MIGA) is the insurance arm of the World Bank Group (WBG). It was created in 1988 with a mandate to “promote cross-border private investment in developing countries”. 

MIGA guarantees are designed to protect investors from potential losses resulting from non-commercial risks, such as restrictions on currency conversions and transfers, breach of contract, expropriation, war or civil disturbance. Since many developing countries are classed as ‘risky’ for business and human rights, MIGA’s so-called ‘de-risking’ makes investing in those countries more appealing.

Like the IFC, some of MIGA’s projects involve de-risking for financial intermediaries, such as commercial banks. The agency does this mainly through capital optimisation guarantees and non-honouring of public debt guarantees, which free up financial resources for private firms by transferring the risk of potential losses to MIGA. Despite the agency’s ‘green’ claims, its lack of rules allows its clients to use those funds as they please, including for fossil fuels.

Here’s an explainer: 

Illustrations by Andrew Zarate

MIGA is smaller than other World Bank Group agencies, but its impact is growing with the pursuit of ‘innovative’ financing models to facilitate private finance. Since July 2024, MIGA has housed a ‘one-stop’ guarantee platform, which World Bank President Ajay Banga claims will “deliver faster, easier access to guarantees for businesses”. However, using public money to ‘crowd in’ private capital is highly risky. It puts profit before people’s rights and needs, and, without accountability, leads to terrible social and environmental impacts.

Recourse’s work on the Multilateral Investment Guarantee Agency

Together with partner organisations, we monitor and critically assess MIGA’s guarantees, notably for investments in the energy sector. We push the agency, and the wider World Bank Group, to fulfil its 2023 commitment to the Paris Agreement, and use its leverage to limit fossil fuel financing at financial intermediary clients. We also contribute to processes that aim to strengthen the Agency’s accountability.

• In 2019 and 2020, we joined a group of civil society organisations in submitting recommendations to the external review of the IFC and MIGA accountability framework.
• In 2024, we contributed to joint civil society statements and recommendations on the IFC and MIGA Remedy and Responsible Exit Framework.
• We have examined MIGA’s guarantees for energy investments (2024) and its so-called ‘greening’ of financial intermediaries for climate finance. We called out the agency’s ongoing support for fossil gas, lack of transparency, and inadequate oversight. 

Browse below for examples of Recourse’s work on the Multilateral Investment Guarantee Agency.