The Office of the World Bank in Cameroon just announced an investment guarantee firm has decided to lend its support to energy investor Actis to ensure stability in Cameroon’s electricity sector.

According to a decision taken by its Board of Directors on June 30, Multilateral Investment Guarantee Agency (MIGA) have guaranteed a sum of $180 million (roughly 82 billion CFA francs) to Energy Cameroon Coöperatief BA, a subsidiary of Actis, as part of its stake in the capital of the National Electricity Company (AES Sonel).

Insurance for a period of eight years covers the risks of currency transfer restriction, war, civil disturbance and breach of contract.

At the same time, MIGA, which specialises in insurance services against political risks and improving credit conditions, has granted Globeleq Africa insurance against the risk of breach of contract covering a period of 20 years and a total of $ 145.7 million (approximately 66 billion CFA francs) for its stake in the central Kribi gas (216 megawatts) and the central Dibamba heavy fuel (88 megawatts).

Michel Wormser, Vice President and General Manager of MIGA, said: "Our support completes the assistance that the Cameroonian electricity sector has received for a long time from the World Bank and from the International Finance Corporation.

“Actis and Globeleq bring significant investments in Cameroon and we are pleased to contribute to efforts in the energy sector to ensure stability, continuity and recovery by reducing exposure to the risks of their investments."

Actis, who acquired shares of U.S. AES in Cameroon in 2013 for a total of $202 million (about 110 billion CFA francs), had sought a guarantee from MIGA for a total coverage of $300 million over a period of 15 years.

MIGA was already alongside Actis through warranty for breach of contract was awarded to its subsidiary Globeleq in the Umeme Uganda project.

In addition, the guarantee given by the multinational agency is not a first for the benefit of private investment in Cameroon.

In 2007, for a period of five years, Loita Capital Partners International Limited, an investment firm based in Mauritius, received a guaranteed $ 1.7 million for its investment in the National Financial Credit Bank (NFC Bank).

In June 2012, MIGA also granted a guarantee of $ 6.7 million for a period of ten years to the Swiss company 4G Africa AG for its investment in HTT Telecom SA, a company known under YooMee Cameroon.

Finally, it can be recalled that the guarantee agency, in 1994, issued a guarantee of $37 million to the International Society of rubber plantations (SIPH) for its investment in the Swiss palm company in the Littoral region of Cameroon.