The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, plans to more than double the value of guarantees it issues annually in Africa to $6.4 billion over the next three and a half years, as it looks to unlock up to $23 billion in private investment across the continent.
The move reflects a broader shift by multilateral lenders toward using guarantees to reduce investor risk and attract capital into sectors often seen as too volatile or uncertain. These include energy, food security, digital infrastructure and financial systems.
MIGA has already expanded its use of guarantees since the World Bank consolidated its guarantee operations under a single framework nearly two years ago. Recent initiatives backed by the agency include debt swap programmes in Ivory Coast and Angola, food security efforts in Kenya, and support for bank lending in Ghana and Zambia.
While the agency did not provide a detailed pipeline of upcoming projects, it said future guarantees would continue to prioritise energy grids, trade finance, digital connectivity and local banking systems. The instruments deployed will include political risk insurance, credit enhancement tools, debt swaps and portfolio guarantees spanning multiple countries.
Managing Director Tsutomu Yamamoto said the expansion would be central to unlocking investment and supporting long term economic stability. By absorbing initial risks, these guarantees aim to make African markets more attractive to private investors who might otherwise stay away.
The push comes at a time when traditional development aid is under pressure. Wealthier economies are cutting back on funding while increasingly focusing on securing access to Africa’s critical minerals and strategic resources. In that context, guarantees are emerging as a way to stretch limited public funds and crowd in private capital.
MIGA’s Africa strategy also feeds into a wider institutional target. The World Bank Group is aiming to scale its global guarantee issuance to $20 billion annually by 2030, signalling a long term pivot toward blended finance as a core development tool.
For African economies facing high borrowing costs and constrained fiscal space, the success of this approach will depend on whether these guarantees translate into tangible investment on the ground, rather than remaining financial instruments on paper.
