International Investment guarantees in South Africa

International Investment guarantees in South Africa

South Africa is a member of Multilateral Investment Guarantee Agency since Mar 10, 1994.

MIGA helps investors and lenders deal with the following risks by insuring eligible projects against losses relating to:

  • Currency inconvertibility and transfer restrictions
  • Expropriation
  • War, terrorism and civil disturbance
  • Breach of contract
  • Non- honoring of financial obligation

Its benefits to investors

  • Deterring harmful actions

MIGA’s status as a member of the World Bank Group and its relationship with shareholder governments provides additional leverage in protecting investments.

  • Resolving disputes

As an honest broker, MIGA intervenes at the first sign of trouble to resolve potential investment disputes before they reach claim status, helping to maintain investments and keep revenues flowing. If MIGA is unable to prevent a claim, our strong balance sheet allows us to make prompt payments.

  • Accessing funding

Our guarantees can help investors obtain project finance from banks and equity partners.

  • Lowering borrowing costs

MIGA-guaranteed loans may help reduce risk-capital ratings of projects.

  • Increasing tenors

The agency can provide insurance coverage for up to 15 years (in some cases 20), which may increase the tenor of loans available to investors. Providing extensive country knowledge. MIGA applies decades of experience, global reach, and knowledge of developing countries to each transaction.

  • Providing environmental and social expertise

MIGA helps investors and lenders ensure that projects comply with what are considered to be the world’s best social and environmental safeguards

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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