Political Risk Insurance

Political Risk Insurance

After nearly a quarter century of conflict Afghanistan is facing extensive reconstruction needs. The costs of rebuilding are expect to exceed US$15 billion over the next decade, underscoring the need for private sector help in meeting the challenge. Investment opportunities exist across a rang of sectors

The Afghanistan Investment Guarantee Facility (AIGF) is designed to help bridge the gap between investors’ desires to tap business opportunities in the country and concerns about political risks. The Facility, administered by MIGA will mitigate key risks for foreign investor by providing political risk guarantees for their investments.

AISA represents the insurance products of the Multilateral Investment Guarantee Facility (MIGA), a section of the World Bank.

  • Through MIGA you may ensure your investment against
  • Expropriation
  • War and Civil Disturbance
  • Breach of Contract
  • Transfer restrictions

MIGA also offers a special SME coverage scheme for investment projects up to US$15 million. Please log on to http://www.miga.org/guarantees/ for more details and application forms or contact our AISA’s Investor Support Department.

OPIC Insurance: Afghanistan

The Overseas Private Investment Corporation offers political risk insurance for U.S. companies interested in investing in Afghanistan. OPIC can insure against three types of political risk: currency inconvertibility, expropriation, and political violence. OPIC’s coverage for currency inconvertibility insures against the inability to convert profits, debt service and other investment returns from Afghanistan local currency (Afghani) into U.S. dollars, or to transfer U.S. dollars out of the host country. OPIC’s expropriation coverage insures against the loss of an investment due to the unlawful nationalization or confiscation by the host government. OPIC‘s political violence coverage protects investors against the loss of assets or business income due to violence undertaken for political purposes, including war, revolution, insurrection, or politically motivated civil strife, terrorism or sabotage. In addition to insuring eligible equity investors, OPIC also can insure eligible U.S. lenders, lessors, contractors and exporters against the risks of currency inconvertibility, expropriation, and political violence. For more information log on to http://www.opic.gov/what-we-offer/political-risk-insurance for details on coverage’s and registration forms or contact OPIC’s main line at (202) 336-8400.