(Business in Cameroon) - The Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank that provides investors and cross-border creditors with guarantees against political risks, claims a robust portfolio of $458 million (nearly CFA280 billion) in Cameroon as of December 31, 2023.
This figure was revealed during the visit of Shuichi Hayashida, MIGA's Head of West and Central Africa, to the Investment Promotion Agency (API) in Cameroon on January 31, 2024. With officials from this Cameroonian public institution, the MIGA representative explored opportunities for collaboration aimed at attracting more investors to the country. And, according to the company, MIGA's missions and status are a major asset in this field.
Indeed, in its investment guarantee guide, the agency noted that “MIGA’s guarantees protect investments against noncommercial risks and can help investors obtain access to funding sources with improved financial terms and conditions. The agency derives its unique strength from being a member of the World Bank Group and a treaty-based international organization whose shareholders include most countries of the world. This enables MIGA to provide an umbrella of deterrence against government actions that could disrupt projects and to assist in resolving disputes between investors and governments.”
In this context, MIGA issued a €164.5 million guarantee (around CFA108 billion) to secure the investments made by EDF and Stoa Infra & Energy in the ongoing construction of the Nachtigal Dam (420 MW) in the Central Region of Cameroon. Essentially, the agency provides a contract breach guarantee for up to 15 years to these two shareholders of Nachtigal Hydro Power Company (NHPC), the entity overseeing the project's development and operation. This initiative aims to increase Cameroon's electricity generation capacity by 30% in a single move.
Simultaneously, MIGA has been guaranteeing the investments of the British fund Actis, present in Cameroon through Eneo, the power utility, since 2014. Since 2012, this World Bank subsidiary has also supported the investment made in Cameroon by HTT Telecom SA, the parent company of the 4G Africa group, with Yoomee being its most recognized brand.