Starting today, the World Bank Group (WBG) guarantee platform is operational. The platform, hosted by the Multilateral Investment Guarantee Agency (MIGA), consolidates products and expertise from the World Bank, International Finance Corporation (IFC), and MIGA to enhance simplicity, efficiency, and speed in development financing. It aims to increase WBG annual guarantee issuance to $20 billion by 2030.
WBG Guarantees will serve as a centralized hub for all WBG guarantee activities, offering clients streamlined options to meet project needs and development goals. The platform provides three types of coverage: credit guarantees for loans to public or private sectors; trade finance guarantees for projects involving public entities; and political risk insurance against non-commercial risks for private sector projects or public-private partnerships.
“MIGA is excited to host and begin the operationalization of the guarantee platform. This marks a pivotal moment in our commitment to sustainable economic development,” said Hiroshi Matano, MIGA Executive Vice President. “We aim to leverage the World Bank Group’s collective expertise and knowledge of guarantee business to usher the WBG into a new era of partnership with the private sector, catalyzing foreign investment in emerging markets and developing economies.”
The launch aligns with recent recommendations from the G20 Independent Expert Group on Strengthening Multilateral Development Banks, which called for expanded use of guarantees to mitigate risk and unlock private finance. Additionally, guidance from the Private Sector Investment Lab launched by WBG in June 2023 has been instrumental in shaping this initiative.
The platform aims to revolutionize development financing by enhancing resource allocation towards high-impact projects across diverse sectors such as energy access, pandemic preparedness, and climate action. By leveraging WBG's collective expertise, it seeks to drive sustainable development and inclusive growth globally.
In fiscal year 2024 alone, WBG issued approximately $10.3 billion in new guarantees: $8.2 billion from MIGA, $1.4 billion from IFC, and nearly $700 million from the World Bank.
About World Bank Group Guarantees:
Initiated in 2024, this consolidated platform offers comprehensive guarantee solutions across all WBG institutions through MIGA. It streamlines processes while removing redundancies and increasing accessibility by de-risking investments in developing countries with an objective of boosting annual issuance to $20 billion by 2030.
For more information about the guarantee platform visit: https://www.worldbank.org/wbgguarantees
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Contact:
In Washington: Elizabeth Howton at (202) 458-5922 or ehowton@worldbankgroup.org