The World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) and the General Investment Authority of Yemen (GIA) announced in the past few days that they will cooperate to promote cross-border investments into Yemen. The two agencies signed a memorandum of understanding (MOU) that commits the parties to increasing collaboration as well as raising general awareness about risk-mitigation instruments such as political risk insurance through joint conferences, seminars, and training initiatives.
“Supporting investment into countries affected by conflict has long been a cornerstone of our operational strategy,” said MIGA Executive Vice President Keiko Honda. “We hope that our collaboration with GIA will help bring investments into Yemen that generate economic growth and opportunity for its people.”
“We are grateful for MIGA’s support as we build on our efforts to help Yemen become a more diversified economy,” says GIA Chairman Yahya Mohsen. “The government of Yemen is committed to creating a business environment that attracts more investors into the country, and the establishment of GIA and our collaboration with MIGA is an important step in this direction.”
The types of investments that MIGA can cover include equity, shareholder loans, non-shareholder loans, certain shareholder loan guarantees, management contracts, asset securitizations, capital market bond issues, and leasing, services, franchising and licensing agreements. Projects supported by MIGA can have a strong developmental impact through job creation, skills and technology transfer, and assisting countries to tap natural resources in an environmentally sustainable way.