The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank group. It was established to promote foreign direct investment into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in Washington, D.C.
MIGA promotes foreign direct investment into developing countries by insuring investors against political risk, advising governments on attracting investment, sharing information through on-line investment information services, and mediating disputes between investors and governments.
MIGA provides guarantees against noncommercial risks to protect cross-border investment in developing member countries. Guarantees protect investors against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract (for contracts between the investor/project enterprise and the authorities of the host country). These coverages may be purchased individually or in combination.
Unlike other insurers, MIGA is backed by the World Bank Group and its member countries. MIGA also requires host country government approval for every project. MIGA tries to work with host governments - resolving claims before they are filed.
MIGA can cover only new investments. These include: new, greenfield investments; new investment contributions associated with the expansion, modernization, or financial restructuring of existing projects; and acquisitions involving privatization of state enterprises.
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