MIGA was established in April 1988 to make the World Bank Group more relevant to the development aspirations of the member countries. The primary aim of MIGA is to encourage the flow of Foreign Direct Investment (FDI) into developing countries.
The principal objectives of MIGA are:
- To provide insurance covers for investors against political and non-commercial risks e.g. war and civil disturbance, breach of contract by government, the danger involved in currency transfer and expropriation.
- To insure new investment, including the expansion of existing ones, and promote financial restructuring.
- To provide promotional and advisory services to the governments of developing member countries in their efforts to create an enabling environment for local and foreign private investments.
- To establish credibility among investors, and higher credit rating among global banking and financial markets of its members.
Many developing member countries have been able to attract more Foreign Direct Investment as a result of the insurance guarantee provided by the MIGA.