1 / 14

Risk Mitigation for Investments in MOZAMBIQUE

Risk Mitigation for Investments in MOZAMBIQUE. Christophe Bellinger Director, Europe October 3, 2003. History and Membership. Mission: Facilitate FDI into developing member countries Founded April 1988 Field offices in Africa, Asia and Europe

winfred
Télécharger la présentation

Risk Mitigation for Investments in MOZAMBIQUE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Risk Mitigation for Investments in MOZAMBIQUE Christophe Bellinger Director, Europe October 3, 2003

  2. History and Membership • Mission: Facilitate FDI into developing member countries • Founded April 1988 • Field offices in Africa, Asia and Europe • Total FDI Facilitated (est.): $50 billion; total coverage: US$12.4 billion • 163 Members • 22 Category One countries • 141 Category Two countries

  3. MIGA Products Insurance Against Non-Commercial Risks • protect investors and financial institutions from non-commercial risks • War and civil disturbance • Transfer restriction and inconvertibility • Expropriation • Breach of contract • coverage for medium to long-term investments (3 to 15/20 years) • complement public and private political risk insurers Investment Promotion and Mediation Services • advice to investment intermediaries • on-line investment promotion services • mediation services and dispute resolution between investors and host countries • Training to public and private political risk insurers

  4. MIGA’S GUARANTEE PROGRAMHost Country Approval • All MIGA-guaranteed projects must be approved by the host country • Purpose: • Inform host country about project and MIGA coverage • Ensure that MIGA coverage is consistent with host country development priorities • Approval is not a government counter-guarantee, nor does it imply a contingent liability

  5. MIGA’S GUARANTEE PROGRAMWhat Does MIGA Cover? • equity and quasi-equity • shareholder loans and loan guaranties • commercial loans • other forms of investments • capital markets transactions • technical assistance • management contracts • operating leases • franchising and licensing agreements • performance bonds • movable property • turnkey contracts

  6. Guarantees Portfoliogross Exposure, by region* and sector, in percent (as of 06/30/03) Latin American and Caribbean Europe and Central Asia Sub-Saharan Africa Asia and the Pacific Middle East and North Africa 43 26 19 12 3 $5.1 B Infrastructure Financial Manufacturing Mining Oil and Gas Tourism Services Agribusiness 41 29 10 6 6 4 3 1 * Figures exceed 100% due to master contract with one client

  7. MIGA Priority Areas • IDA-eligible countries • Africa • South-South investments • SMEs • Complex infrastructure projects --------------------- • Conflict-affected countries • Under-represented regions (MENA, Africa, Asia)

  8. FDI Trends for Sub-Saharan Africa 13,814 FDI ($ million) • Less than 1% of global FDI flows • Less than 5% of FDI flows into developing countries • Majority of FDI into only 3 countries: South Africa, Angola, Nigeria 8,092 7,000 6,506 6,076 2002* 1998 1999 2000 2001 *estimate

  9. MIGA Guarantees Portfolio in Africa 893 Gross exposure ($ million) 788 • Total issuance: Over $1.1 billion in 23 countries • FDI facilitated: $5.3 billion (est.) • FY99: 8% of portfolio – FY03: 18% • FY99-03: 58 projects covered 621 524 294 FY03* FY99 FY00 FY01 FY02 *estimate

  10. MIGA in Mozambique • Mozambique is MIGA’s 4th largest host country, overall and MIGA’s largest host country in Africa • MIGA’s Guarantees have facilitated $2.8 billion in FDI into the country • MIGA’s outstanding portfolio in Mozambique consists of 18 contracts of guarantee Exposure: 5.2% of the Agency’s gross exposure Total of $262 million in gross exposure and $192 million in net exposure

  11. Guarantees in Mozambique • MIGA currently underwriting 4 projects in Mozambique (total coverage: $100 million) • In the second half of FY03, MIGA supported 3 important projects (issuing $107 million in coverage) • Sasol (Oil & Gas) • Moma (mining) • Maputo Port (infrastructure)

  12. CASE STUDY: Sasol/Mozambique Development Impact: • Over $2 billion in payments, taxes, etc. to Mozambique • Local purchases: over $1 million/year • Job creation • Improved infrastructure • Landmine removal Investors • Sasol Gas Holdings; Sasol Petroleum International (South Africa) • gas field and pipeline • equity coverage • $72 million in guarantees for 15 years against: • transfer restriction • expropriation • war and civil disturbance • breach of contract • South-South, IDA, post-conflict investment • Joint project with WB, IFC

  13. Investment Marketing Services in Mozambique • MIGA works with the Mozambique Investment Promotion Center (CPI) to support its efforts to attract FDI and strengthen linkages with the local business community • In FY03, MIGA focused on the completion of a baseline evaluation of Mozambique as a beneficiary under MIGA-Swiss Partnership (MSP) • MIGA completed the investigations required to define a targeted technical assistance program under the MSP • Under MSP, MIGA carried out an assessment of country’s apparel sector: an apparel industry outreach program for Mozambique to Honk Kong in September 2003

  14. Thank you www.miga.org Christophe Bellinger Director, Europe 66 Avenue d’Iena 75116 Paris Tel: (33) 1 40 69 32 75 Justin Kouakou Senior Underwriter 66 Avenue d’Iena 75116 Paris Tel: (33) 1 40 69 32 81

More Related