WBSP

Our mission is to end extreme poverty and boost shared prosperity on a livable planet. 𝐀𝐫𝐞 𝐲𝐨𝐮 𝐫𝐞𝐚𝐝𝐲 𝐭𝐨 𝐣𝐨𝐢𝐧 𝐮𝐬? Five institutions, one World Bank Group. Explore opportunities to work alongside some of the world’s best and brightest in the development field.

🗨 𝐖𝐡𝐲 𝐝𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐬 𝐦𝐚𝐭𝐭𝐞𝐫? Worldwide demand for food is increasing, but agricultural investments can be risky business, especially in emerging markets. Opaque laws on property ownership may affect profits. Restrictions on transferring money out of the country can dissuade investors. And political uncertainties and armed conflicts add a new layer of risk, potentially derailing even the most promising of investments. The result? Economic growth is stunted, and people lose out on the opportunities to build jobs and create better lives. That’s why guarantees matter. For AgriConnect, political risk insurance and other types of guarantees are part of the toolkit being deployed to make agribusiness work for farmers, create jobs, and boost food security. The World Bank Group Guarantee Platform, housed at the Multilateral Investment Guarantee Agency (MIGA), brings together guarantee products from across the World Bank Group. We spoke to MIGA agribusiness expert Nabil Fawaz, Sector Manager for Manufacturing, Agribusiness and Services at MIGA, on how these products can make a difference. ➤ 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐨𝐧𝐞 𝐜𝐨𝐦𝐦𝐨𝐧 𝐫𝐢𝐬𝐤 𝐲𝐨𝐮 𝐬𝐞𝐞 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐮𝐩 𝐚𝐠𝐫𝐢𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐦𝐚𝐫𝐤𝐞𝐭𝐬? It’s hard to generalize, but a common challenge is the risk of not being able to convert local currency into foreign currency so the investor can repay its debt or repatriate earning dividends. Sometimes capital controls by the government make it hard to convert currency. Other times it could be limits on foreign exchange trading, or there is simply a shortage of foreign currency in the country. The hard truth is that if investors can’t get money out of the country, then it really doesn’t matter how much revenue a business will generate. Investors need to be able to repatriate earnings or repay debts. MIGA can insure against this risk, helping investors put their money where it will have the biggest impact. ➤ 𝐖𝐡𝐞𝐫𝐞 𝐝𝐨 𝐲𝐨𝐮 𝐬𝐞𝐞 𝐭𝐡𝐞 𝐆𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐝𝐨𝐢𝐧𝐠 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭𝐥𝐲 𝐰𝐡𝐞𝐧 𝐢𝐭 𝐜𝐨𝐦𝐞𝐬 𝐭𝐨 𝐀𝐠𝐫𝐢𝐂𝐨𝐧𝐧𝐞𝐜𝐭? We want to be better at proactively identifying -- as one World Bank Group team -- the big agribusiness-related infrastructure projects that will need foreign private capital to succeed. These are usually public-private partnerships carried out by the private sector with government funding. For example, projects for irrigation systems, transport, cold storage and processing facilities, and special agro-economic zones. These initiatives often require a government commitment to pay over a long period of time, like 10, 15, or 20 years. The government signing certainly is committed, but what happens down the line? Investors want protection against the risk that a contract could be broken. MIGA can provide that. A MIGA guarantee also means that we will step in to try to help the two sides find a solution, avoiding the need for arbitration. So we even go beyond insurance. ➤ 𝐓𝐞𝐥𝐥 𝐦𝐞 𝐬𝐨𝐦𝐞𝐭𝐡𝐢𝐧𝐠 𝐩𝐞𝐨𝐩𝐥𝐞 𝐦𝐢𝐠𝐡𝐭 𝐧𝐨𝐭 𝐤𝐧𝐨𝐰 𝐚𝐛𝐨𝐮𝐭 𝐌𝐈𝐆𝐀 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐬. We’re not just about guaranteeing repayment – working with us helps investors get better financing terms. Because when MIGA steps in, the bank is lending on the back of the World Bank Group’s debt rating, which is triple A, and not on the basis of the sovereign government’s debt rating. So it makes it cheaper to borrow and get a longer repayment period. ➤ 𝐖𝐡𝐲 𝐝𝐨𝐧’𝐭 𝐦𝐨𝐫𝐞 𝐩𝐞𝐨𝐩𝐥𝐞 𝐮𝐭𝐢𝐥𝐢𝐳𝐞 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐬? 𝐒𝐨𝐮𝐧𝐝𝐬 𝐥𝐢𝐤𝐞 𝐢𝐭’𝐬 𝐯𝐞𝐫𝐲 𝐦𝐮𝐜𝐡 𝐚 𝐰𝐢𝐧-𝐰𝐢𝐧 𝐟𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐢𝐧 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐞𝐬. Bonne question. To be honest, the World Bank Group has a rigorous review process. Investors fear that the process will be complicated, lengthy and – or -- costly. These guarantees might not make sense for someone with a smaller ticket, like a $5 million project. But with us, you do get more than a guarantee. Investors need to adopt our environmental, social, and governance standards, which strengthens their reputation and operations. As part of this, we help investors look closely at the environmental and social impacts of their projects and make adjustments. Ultimately, partnering with the World Bank Group can bring a host of benefits

"AS LONG AS POVERTY, INJUSTICE AND GROSS INEQUALITY PERSIST IN OUR WORLD, NONE OF US CAN TRULY REST."

WBSP Our Mission is to end extreme poverty:By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.,To promote shared prosperity,By increasing the incomes of the poorest 40 percent of people in every country.

"We don't have the luxury of choosing our crises."

We are thrilled to be here.
Our vision: to create a world free of poverty on a livable planet.

Almost half of humanity lives in countries that spend more on debt interest payments than on education or health.
This crushing debt crisis is one result of the inequality built into our outdated global financial system.
Deep reforms to the global financial system will not happen overnight. But there are many steps we can take right now, as I outlined today during the launch of our report, A World of Debt.
Action will not be easy - but it is essential, and urgent.

Every is a moment of rebirth.
Together, let's make 2023 a year when peace is restored to our lives, our homes, and our world.
HAPPY NEW YEAR.🎆

Our warmest wishes to everyone celebrating .
All of us can draw inspiration from this season, and bring more compassion, empathy, reflection, and solidarity into our communities and around the world.

The global energy system is broken and bringing us ever closer to climate catastrophe.

The combined profits of the largest energy companies in the first quarter of this year are close to $100 billion.

This grotesque greed of the fossil fuel industry and their financiers is punishing the poorest and most vulnerable people, while destroying our only home.

We must change course – and the only credible direction to take is away from fossil fuels and towards renewable energy.

Developed economies must tax the windfall profits of fossil fuel companies.

The WorldBankStopPoverty Group is preparing a $3bn package of support for Ukraine, starting with a fast support operation for at least $350m that will soon be submitted to our Board.