Category Archives: Political Risk Insurance

BUSINESS by BiztechAfrica – July 3, 2011, 2:43 p.m. Image: by World Bank

The World Bank has made commitments and support to developing nations to the tune of USD57.4 billion in fiscal year 2011.in a new report, the World Bank noted that as developing countries emerged from the financial crisis in FY11 (July 1, 2010 – June 30, 2011), the Bank Group had provided an estimated 712 loans, grants, equity investments and guarantees to promote economic growth, fight poverty, and assist private enterprise.  Much of the support focuses on food security and infrastructure development. of these commitments, financing for infrastructure, critical for job creation and future productivity, is estimated to reach USD20 billion in FY11 – 46% of total lending.  . “over the past year, the World Bank Group clearly demonstrated our commitment to support growth and opportunity for our clients even as the reverberations from the global crisis still send shock waves through the world economy,” said World Bank Group President Robert B. Zoellick.  “as the multi-speed recovery takes shape, high and volatile food and fuel prices are stirring new challenges, putting vulnerable populations at risk. The World Bank is honing its focus on areas where we can add most value: targeting the poor and vulnerable; creating opportunities for growth; promoting global collective action; strengthening governance; and managing risk and preparing for crisis. we are doing all this while making the Bank a more transparent, accountable and results-driven institution.”   The report says commitments from the International Development Association (IDA), the World Bank’s Fund for the Poorest which provides low-interest loans and grants to 79 of the world’s poorest countries, rose to a record USD16.3 billion in FY11. it adds: “FY11 was the third year of implementation under the IDA15 Replenishment, which itself saw a record increase in development funding for IDA countries. Sub-Saharan Africa accounted for about half of the total IDA15 funding with IDA support focused on empowering and protecting the poor; strengthening institutions and governance; fostering gender equality; and addressing global challenges such as climate change.”“IFC, the largest provider of multilateral financing for the private sector in developing countries, again provided a record amount of financing to businesses in developing countries, helping the private sector create jobs, strengthen infrastructure, improve agricultural efficiency, and confront other development challenges. Preliminary and unaudited data as of June 30 indicate IFC invested about USD18.7 billion in 513 projects in FY11, reflecting an estimated project value of around USD100 billion. in FY10, IFC investments totaled USD18 billion. IFC investments have more than doubled in the past five years.” “IFC’s work in FY11 again included pioneering projects that address economic uncertainty and increase opportunity. in the Middle East and North Africa, for example, IFC and the Islamic Development Bank launched a program that will mobilise as much as USD2 billion to promote Education for Employment, a vital project in a region where youth unemployment runs over 25%. in Turkey, IFC is helping the country use renewable energy to meet its growing demand for power. it structured its largest-ever syndication—a €700 million financing package for Enerjisa Enerji Uretim. IFC also provided essential support to the G20’s new Financial Inclusion Initiative, an effort aimed at enhancing access to finance for small and medium enterprises. The Bank Group’s political risk insurance arm, the Multilateral Investment Guarantee Agency (MIGA) issued USD2.1 billion in guarantees—a historic high.  The agency continues to see a return to a more diversified portfolio across regions and sectors. FY11 commitments to Africa included USD7 billion from IDA and USD56 million from IBRD; USD2.1 billion from IFC; and USD243 million in MIGA guarantees for projects in the region.according to other reports the third phase of the World Bank’s credit programme to improve access to affordable communication services to Malawi, Mozambique and Tanania topped USD151 million.The World Bank says it has supported more than 100 developing countries to reform their ICT sectors, helping spur investment and modernisation that in turn accelerates economic growth and poverty reduction.  Among the World Bank Group’s ICT development focus areas are improving affordability, widening access to services such as broadband and using ICTs to improve service delivery.