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Posted By: Khalid Massoudi | 27 Jun 2017

World Bank provides insurance for large investments in Afghanistan

As there are numerous investment opportunities in different business sectors of Afghanistan which attracts the attention of domestic and foreign investors, the government of Afghanistan has tries to take more actions for the support of domestic and foreign investments in these opportunities also pave the way for profitability and greater safety of domestic and foreign investors.

In continuation of efforts to support investment in Afghanistan after winning the first place in investment support program among the countries of Caucasus, Russia and Central Asia, this time the World Bank has stated that the World Bank’s Multilateral Investment Guarantee Agency (MIGA) provides insurance services to large investments in Afghanistan.

MIGA is one of the five members of World Bank Group that the main purpose of its establishment is to support and develop direct foreign investments in developing countries and it is the first institution which guarantees the risks of trade and investment, and provides insurance services to large investments in Afghanistan.

MIGA in Afghanistan announces the guarantee rate of commercial risk and appropriately determines their premiums, according to the amount and plan of investment both domestic and foreign. The guarantee period is usually 15 years and may be increased to 20 years due to nature of the plan.

In general, insurance coverage of MIGA for investors whose invest their net asset in cash may be more than 90 percent of the total amount of their investment and in exceptional cases up to 95 percent, according to the agreements made in the insurance agreements.

Although investment opportunities in Afghanistan is unparalleled in the world and according to the latest research, only the richness of investment in mines sector of this country has the first place in the world and can turn Afghanistan into one of the richest countries in the world, but still lack of insurance for large investment in Afghanistan has led to less investment in this untouched business opportunities.

Fortunately now by beginning of MIGA insurance of World Bank for domestic and foreign investments in Afghanistan, this problem has been solved and the biggest opportunity is paved for all domestic and foreign investors.

According to World Bank’s report, in the first action for the implementation of this process; three biggest investments in Afghanistan have been insured for 154 Million USD by this organization.

Afghan government while supporting this initiative intends to develop public awareness about this issue in cooperation with the World Bank. It is expected to be the big step toward attraction of investment in Afghanistan and to be the factor to provide further context to all investors in the profitability of small, medium and large enterprises, both domestic and foreign in this country.


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