The private sector in Tanzania has a received a US$185m grant from the World Bank. The funds were released by the Multilateral Investment Guarantee Agency (MIGA).
The aim of the funds is to help in projects in infrastructure, mining and energy sectors. MIGA Vice President and Chief Operating Officer, Michael Wormser said that MIGA is looking for ways to partner with government to ensure creation of jobs and improve infrastructure. The CEO also indicated that MIGA aims at promoting Foreign Direct Investment (FDI) into developing countries to support economic growth in these countries, reduce poverty, and improve people’s lives.
Agribusiness is another key sector that MIGA is keen on improving. According to Michael, MIGA is going to invest US$60m to support the agricultural sector through silver sand project to ensure that citizens of Tanzania are able to turn the agriculture sector into green revolution.
In his view, the mining sector is a complex industry that requires a lot of attention due to the fact that they are mostly located in volatile areas politically which makes it an area that should be considered keenly.
MIGA is a member of the World Bank group and has the mandate to offer political risk insurance and credit enhancement guarantees. Such guarantees help investors protect foreign direct investments against political and non-commercial risks in developing countries.
Since its inception in 1988, MIGA has issued more than $28 billion in political risk insurance for projects in a wide variety of sectors, covering all regions of the world.