Blended finance can help achieve the sustainable development goals, according to MIGA

Karin Finkelston, vice president and chief operating officer of the World Bank’s Multilateral Investment Guarantee Agency ( MIGA ). Photo by: Sikarin Thanachaiary / World Economic Forum / CC BY-NC-SA

In Georgia, an Indian energy giant commissioned to build the nation’s first hydropower plant worried about potential instability. In South Africa, the national electricity utility struggled to attract loans for a large-scale renewables push, while in Burundi, brutal political violence had foreign coffee investors thinking about pulling out — imperiling small farmers across the country.

In each country, the projects went ahead after receiving risk insurance or credit enhancement from the World Bank’s Multilateral Investment Guarantee Agency.

Through its political risk insurance guarantees, MIGA has long played a key role in facilitating private sector investment in nations deemed too risky or unstable for traditional foreign direct investment. It is a model the agency hopes will be emulated as the development sector examines how to bridge the financing gap needed to reach the Sustainable Development Goals in a world that is likely to get more unstable.

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Joanes Legiste