UBA partners W/bank agency on infrastructure financing

The United Bank for Africa (UBA) Plc is set to partner with Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, to mobilize capital for important infrastructure projects in Africa.

Michel Wormser, Vice President and Chief Operating Officer of MIGA revealed the collaboration plan with UBA during a working visit to UBA House in Lagos on Monday. Speaking during the visit, Wormser said the proposed partnership with UBA would explore areas MIGA can increase its support to UBA towards increasing its investment into emerging markets in its countries of operation.

He disclosed that MIGA provides political risk insurance and credit enhancement products that can help mobilize UBA’s investment into projects with high development impact. “UBA is playing a prominent role as an investor in other countries in sub-Saharan Africa, and MIGA can help UBA increase its investments in these new markets,” he stated.

Phillips Oduoza, UBA’s Group Managing Director/ Chief Executive Officer, while responding said UBA’s involvement in cross border businesses across 19 African countries means that it is well positioned to partner with MIGA.

According to him UBA is to collaborate with MIGA on credit risk management in big ticket transactions for infrastructure projects with particular interest in power and transmission projects. UBA has been significantly involved in the financing of the power sector privatization exercise in Nigeria, providing funding for different investors to acquire the Distribution and Generating Companies (DISCOs and GENCOs) sold by the Federal Government of Nigeria.

MIGA’s Vice President is visiting Nigeria from March 31st to April 2nd. The aim of Wormser’s trip is to identify areas where MIGA can help the Nigeria mobilize capital for important infrastructure projects and other job-creating enterprises to meet its development goals. As part of the visit, Wormser is meeting with government ministries, banks, and enterprises.