ľ¹ÏÓ°Ôº Group's guarantee solutions were scattered across our institutions, each following different processes, requiring clients to engage with each institution separately.?These processes slowed operations and reduced efficiency.
We launched on July 1, 2024, to address this. The platform, housed at the Multilateral Investment Guarantee Agency (MIGA), is designed to streamline product offerings and maximize the limited capital available for development in emerging markets and developing economies.?
The new guarantee platform consolidates all our guarantee products and experts, enhancing efficiency, simplicity, and speed:
One-Stop Shop: All World Bank Group guarantee experts from the World Bank, the International Finance Corporation (IFC), and MIGA are now under one roof, making it easier for clients to access the full range of guarantee products.
Simplified Product Menu: Clients can choose from a single, comprehensive menu of guarantees tailored to their specific needs and risk profiles.
Faster Processing: By adopting a common approach to guarantee reviews and eliminating redundant steps, we'll provide clients with a more transparent and predictable process.
Global Accessibility: We're expanding our guarantee teams and training staff worldwide so clients can access our products and expertise from anywhere.
Focused Resources: A new risk-weighted approach will allow us to concentrate on high-impact projects and portfolios, tackling complex challenges more effectively.
Innovative Solutions: We're developing new and innovative guarantee products to enable greater private sector participation in addressing pressing development issues.
World Bank Group President Ajay Banga announced the guarantee platform at the G20 Ministerial Meeting in Brazil on February 28, 2024.
Our new products will allow the private sector clients to expand their footprint and ambition. For example, IFC and MIGA guarantees may be bundled to cover private and public sector risks.?
World Bank Group guarantee products will continue to be used for transactions and projects that promote foreign direct investment and protect investors from political risk. For example, they can support Sub-Saharan Africa and the poorest, fragile, and conflict-affected countries to improve energy access.?They can also help middle-income countries make the transition to greener energy.
The overhaul of our guarantee business began when the World Bank Group started an evolution process last year, reimagining its vision and mission, operating model, and financial capacity. This included discussions on optimizing the use of guarantees. The idea for the guarantee platform emerged from a series of critical inputs, including the World Bank Group's Private Sector Investment Lab, which brought together global business leaders to identify barriers to investment in developing countries. Participants highlighted the need for more accessible political risk insurance and streamlined processes. The G20 Independent Expert Group report on Strengthening Multilateral Development Banks also called for an expanded use of guarantees to mitigate risk and attract private finance. We're excited to bring this transformative marketplace to our clients.