How the World Bank’s MIGA Plans to Mobilize $23 Billion for Africa by 2030

Africa faces a massive investment gap in infrastructure, energy, food systems, and digital connectivity. To help close that gap, the World Bank Group is scaling up one of its key financial tools: investment guarantees.

Through its Multilateral Investment Guarantee Agency (MIGA), the institution plans to more than double annual guarantees issued in Africa to $6.4 billion by 2030, aiming to attract private investors to projects that might otherwise be considered too risky. The initiative could mobilize about $23 billion in private capital and improve the lives of roughly 190 million people over the next several years.

What MIGA’s Expansion Means

MIGA provides guarantees that protect investors and lenders against certain non‑commercial risks, such as political instability, contract breaches, or currency transfer restrictions. By reducing these risks, the guarantees make projects in developing markets easier and cheaper to finance.

Under the new strategy, the World Bank Group will significantly increase the volume of these guarantees in Africa. The goal is to catalyze private investment in sectors critical for job creation and economic growth across the continent.

The expansion is also part of a broader shift within the World Bank Group toward mobilizing private capital alongside public financing rather than relying only on traditional development loans.

How Much Investment Could Be Mobilized

The World Bank estimates that the expanded guarantees could:

• Mobilize about $23 billion in private investment for African projects
• Benefit around 190 million people through improved services and infrastructure

Expected development impacts include:

• 43 million people gaining electricity access
• 50 million people and businesses benefiting from improved financial inclusion
• 5 million people experiencing stronger food and nutrition security
• 51 million people using digitally enabled services
• 37 million gaining broadband connectivity
• 3 million accessing sustainable transport services

These outcomes highlight how guarantees are designed to support large-scale infrastructure and economic development projects that directly affect daily life across the continent.

Key Sectors the Guarantees Will Support

The World Bank Group says the expanded guarantee program will focus on job‑rich and high‑impact sectors, including:

• Agribusiness and food systems
• Energy and power infrastructure
• Healthcare
• Financial services and trade finance
• Digital services and broadband infrastructure
• Transport and other core infrastructure

Two major initiatives expected to benefit from the guarantees include:

• AgriConnect, which aims to strengthen agricultural supply chains, boost smallholder farming productivity, and improve food security.
• Mission 300, a joint effort by the World Bank Group and the African Development Bank to connect 300 million people in Africa to electricity by 2030.

The Role of the World Bank Guarantee Platform

A key piece of the strategy is the World Bank Group Guarantee Platform, launched in 2024 and housed within MIGA.

The platform consolidates guarantee products and expertise from three institutions:

• The World Bank
• The International Finance Corporation (IFC)
• The Multilateral Investment Guarantee Agency (MIGA)

By bringing these capabilities together under one system, the platform aims to:

• Simplify access to guarantee financing
• Reduce duplication across institutions
• Provide a broader range of risk‑mitigation tools
• Speed up project approvals

The long‑term objective is to increase total World Bank Group annual guarantee issuance to about $20 billion by 2030.

Why Guarantees Matter for Africa’s Investment Gap

Africa’s economy is expanding rapidly, but investment levels often lag behind development needs. One major reason is perceived risk among international investors.

Guarantees address this barrier directly by absorbing some of the potential losses tied to political or regulatory risks. When a highly rated institution like the World Bank backs a project, lenders and investors are typically more willing to provide financing.

The stakes are high. Africa’s working‑age population is projected to grow by about 740 million people over the next three decades, with roughly 12 million young people entering the labor force every year. Meeting that demand requires massive investment in infrastructure, energy, digital services, and job‑creating industries.

By expanding guarantees, the World Bank Group hopes to unlock private financing at a scale that public funds alone cannot achieve.

The Bottom Line

MIGA’s plan to scale guarantees to $6.4 billion annually in Africa by 2030 represents a major push to mobilize private investment for development. By reducing investor risk and coordinating efforts through the World Bank Guarantee Platform, the initiative aims to unlock $23 billion in private capital, support key industries, and improve access to essential services for around 190 million people.

If successful, the approach could demonstrate how risk‑sharing tools—rather than direct lending alone—can help finance large‑scale development across emerging economies.