MIGA's provision of $225 million in guarantees has supported $450 million in foreign direct investment in the hospitality sector across Sub-Saharan Africa. This initiative, conducted in partnership with Kasada Hospitality Fund L.P., has led to the completion of 17 hotel projects, creating 2,900 hotel rooms and preserving 1,860 jobs, with forecasts suggesting significant economic impact through indirect and induced jobs.
The tourism and hospitality industry has the potential to be a substantial contributor to Sub-Saharan Africa's economic growth, aiding in the generation of $168 billion in revenue and creating over 18 million jobs by 2033. However, attracting international financing remains challenging due to perceived risks. MIGA's guarantees have provided financial security to projects in countries such as Cameroon, Senegal, Côte d’Ivoire, Kenya, Namibia, Nigeria, and Rwanda, offering coverage against transfer restrictions, expropriation, and civil disturbances for up to 15 years.
Prominent projects include a 170-room hotel complex in Abidjan, Côte d’Ivoire, and the 181-room Movenpick Ikoyi Hotel in Lagos, Nigeria. In Nairobi, Kenya, loans have been instrumental in the modernization and expansion of a former hotel, with MIGA covering $27.5 million in insurance for the venture.
The project highlights the effectiveness of scale collaboration, utilizing the collective strengths of the World Bank Group entities and demonstrating a successful programmatic guarantee approach. Future goals for the Kasada project include achieving 50% female representation at the managerial level in Côte d'Ivoire and Rwanda, alongside implementing development programs for women in the management pipeline.