Somalia has become the latest member of the Multilateral Investment Guarantee Agency (MIGA), putting the number of its membership at 182.
In a Twitter post, Somali prime minister welcomed the move saying the move will help economic recovery.
“Somalia becomes the 182nd member of MIGA, the agency which protects and insulates potential international investors against any political and security risks! Somalia readies itself for debt relief and our economic recovery,” PM Kheire said in a Twitter post.
MIGA was created in 1988 as a member of the World Bank Group in order to promote foreign direct investments to emerging markets; it also offers a political risk guarantee to international investors and lenders.
The agency places a special focus on supporting investments in IDA-eligible, conflict-affected, and sub-Saharan African countries, as well as infrastructure and investments between developing countries, according to a brochure the Agency distributes.
MIGA also provides dispute mediation services to its clients; it is this service that has given name in Ethiopia. After signing a memorandum of understating with the Ethiopian government, MIGA brokered deals between foreign nationals who owned properties in Ethiopia but nationalized by the military regime.
The membership enables eligible foreign companies seeking to invest in Somalia to receive MIGA’s guarantee coverage, which protects investments against the risks of transfer restriction, expropriation, breach of contract, and war and civil disturbance (including terrorism).
