The Vice President of the Multilateral Investment Guarantee Agency (MIGA), Ethiopis Tafara has said that his Organisation has currently guaranteed over $7 billion of foreign investments to African countries.
Speaking during the just ended two day high-level dialogue to promote foreign direct investment (FDI) hosted by both the Tanzanian government and MIGA, Tafara said that Indeed, Africa represents about 30 percent of MIGA’s global portfolio.
He said that the Tanzania Roundtable Dialogue marked the second in a series of government-investor dialogues that MIGA was co-hosting together with specific host governments in various regions across Africa, the Caribbean, South America and Asia.
The Tanzania Roundtable Dialogue that took place last week brought together international foreign investors with government representatives from Tanzania, as well as other East and southern African countries.
In 2022 alone, MIGA’s guarantees provided over 35 million people in Africa with access to power and helped generate almost $3 billion in annual tax revenues for African governments.
“Energy access has been one of MIGA’s top priorities for many years. We are constantly looking to leverage new technologies, improve regulatory frameworks, and strengthen utilities, all of which help to crowd in the private sector. This is why we were very excited to issue our first-ever guarantee for Box’s off-grid solar projects supporting rural communities in Kenya, Rwanda and DRC.”
He further said that MIGA guarantees also span infrastructure, financial services, manufacturing, agriculture, services sectors, and trade. From covering Silver lands’ farms in Tanzania and Namibia; to Kasada Hospitalities’ hotel projects in 10 African countries including Rwanda, Kenya and Uganda.
“We want to do more. There is much more to be done and Africa remains one of MIGA strategic priorities. Acutely aware that public financing is under severe pressure, MIGA is ready to expand its commitment to investors and governments to unlock private capital at the scale required.” He said.
Meanwhile, Tafara has commended President Samia Suluhu Hassan for strongly expressing interest in opening up the Tanzanian economy to private sector investors (and we are seeing increasing investment interest in the country) in areas such as agriculture, logistics, warehousing, energy and infrastructure.
“The big question here today is how can we do more? How can African governments bring in more FDIs? How can private investors take on the available opportunities, navigate global and local risks, and invest in a big way in Africa?” he paused.
According to him, “The risk”, at its most basic, is about uncertainty adding that in a world of finite resources, risk management means identifying the uncertainties with which we can live, and those with which we cannot.
He said willingness to assume some risk in development projects is a necessary component of investment decisions, knowing where uncertainties exist and understanding the allocation of risks and benefits as between government and investors.”
He added, “I often hear critics charge that investors overestimate the level of local risk they assume in development projects and that the actual risks are remote and unlikely. You will forgive investors if they perceive local risk and uncertainties the same way. The good news is that MIGA can serve to bridge the difference between perception and reality through our political risk insurance.”
For her part, Minister of Investment, Industry and Trade Ministry of Investment, Industry and Trade, Dr Ashatu Kijaji commended President Samia Suluhu Hassan for opening an economic diplomacy.
She said that over 10 countries and over 75 foreign companies attended that investment forum and urged potential and prospective local and foreign investors to come and invest in the country adding that the government has put in place a conducive business environment.
Kijaji said that the investment climate in the country has tremendously improved noting that during the 2021/22 financial year, the Tanzania Investment Centre [TIC} registered around 528 projects worth over 1trn/-