MIGA Guarantees Unlock $450M Tourism Investment, Create Jobs in Africa
The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, has successfully leveraged $225 million in guarantees to unlock $450 million in foreign direct investment (FDI) in Sub-Saharan Africa’s hospitality sector, catalyzing job creation and strengthening tourism-driven economic growth across the continent.
Through a strategic partnership with Kasada Hospitality Fund L.P., a Mauritius-based private equity firm focused on the hospitality industry, MIGA supported 17 hotel development projects across seven African countries—Cameroon, Senegal, Côte d’Ivoire, Kenya, Namibia, Nigeria, and Rwanda. Within just three years, these efforts delivered 2,900 new hotel rooms and retained 1,860 jobs, with each room generating between 1.5 to 3 direct jobs.
The initiative, anchored by a master contract signed in 2021, saw MIGA issue 14 contracts of guarantee, offering political risk insurance for up to 15 years. This coverage included protection against risks such as transfer restrictions, expropriation, war, and civil disturbance—key concerns that often deter international financiers from investing in the region.
“MIGA provided Kasada with extensive guarantee coverage at competitive pricing across key markets, enabling us to execute each investment with greater certainty,” said David Damiba, Managing Partner and Co-CEO of Kasada.
In Côte d’Ivoire, MIGA’s backing has enabled the greenfield construction of a 170-room hotel in Abidjan, boosting sustainability and business tourism in an underserved area. In Nigeria, guarantees facilitated the revitalization of the 181-room Movenpick Ikoyi Hotel in Lagos.
In Nairobi, Kenya, an $11 million IFC loan and $11 million from Proparco, paired with MIGA’s $27.5 million in insurance, have modernized a former Crowne Plaza into a sustainable hospitality hub.
Overall, $205 million of the mobilized investment went to International Development Association (IDA) countries, with far-reaching socio-economic benefits expected along the tourism value chain.
In a gender-focused move, Kasada has committed to achieving 50% female representation in managerial roles at project sites in Côte d’Ivoire and Rwanda. This includes implementing training programs to nurture women’s advancement in hospitality leadership.
The success of the Kasada Master Contract showcases the power of a programmatic, One World Bank Group approach—demonstrating how joint efforts by MIGA and the International Finance Corporation (IFC) can streamline environmental and social supervision, reduce client burden, and scale impact efficiently.
Tourism in Sub-Saharan Africa is projected to support up to 18 million jobs by 2033, with the potential to generate $168 billion in domestic revenue and foreign exchange. MIGA’s guarantees are helping bridge the financing gap, turning this vision into reality through practical, scalable investment solutions.
