MIGA helps expand financing in Sub-Saharan Africa with $497m in guarantees
The Multilateral Investment Guarantee Agency has issued $497 million in guarantees to South Africa’s Absa Group to help expand financing across seven countries in Sub-Saharan Africa.
The guarantees are for up to 15 years on Absa’s investments into its subsidiaries in Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda and Zambia.
MIGA’s coverage reduces the regulatory risk weighting of mandatory reserves on a consolidated level, freeing up capacity and enabling the subsidiaries to provide additional domestic lending. The subsidiaries are expected to increase financing for corporates and SMEs, and on projects with potential climate co-benefits.
With the backing of these guarantees, Absa’s subsidiaries in Kenya and Mauritius are expected to lend $325 million in support of new climate finance transactions.
