The Multilateral Investment Guarantee Agency (Miga) and Sace, Italy’s export credit agency, have signed a memorandum of understanding to support each other’s investment guarantee programmes, with the goal of promoting Italian investment into emerging economies. The signing took place at the annual meeting of the Berne Union, the international union of credit and investment insurers, held in Merida, Mexico.
The partnership, the first between the two organisations, calls for Miga and Sace (l’Istituto per i Servizi Assicurativi del Commercio Estero) to work together to identify possible projects for guarantee coverage, and provide coinsurance and reinsurance for projects guaranteed by one of the entities.
“For us, partnering with bilateral export credit agencies is a critical way of supporting national investors of those countries that wish to invest in developing countries,” says Miga’s executive vice-president, Motomichi Ikawa. “This partnership should help raise awareness among Italian companies of the many untapped investment opportunities in emerging economies, especially in Eastern Europe and North Africa.”
Sace general manager Giorgio Tellini adds: “This partnership creates a unique union-blending Miga’s experience covering non-commercial risks and our knowledge of the Italian market and investor needs. Our collaboration should be instrumental in supporting Italian companies that want to establish themselves in foreign markets and move beyond the traditional role of exporter.”
Since 1995, Miga has offered US$56mn in guarantee coverage for nine projects by Italian investors. Projects insured by Miga have been in tourism, manufacturing, agribusiness, services, and infrastructure. Contracts vary in size, from less than US$6mn for a manufacturing project in China, to US$21mn for a bakery in Brazil.