The Invest in African Energy (IAE) 2027 Forum, taking place in Paris from May 11-13, will put this financing challenge at the center of its Commodities and Capital Allocation Forum through a dedicated session on Global and Political Risk Insurance to Secure Credit Guarantees.

Africa accounts for roughly 20% of the global population but currently attracts only around 3% of global energy investment. The IEA estimates that achieving the continent’s energy and climate goals will require annual investment to exceed $190 billion from 2026 to 2030. As capital requirements grow, the ability to manage political and sovereign risk is becoming increasingly important to making projects bankable.

Multilateral Guarantee Instruments Are Scaling Rapidly

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, is at the forefront of this effort. MIGA plans to more than double the guarantees it issues annually across Africa, targeting $6.4 billion per year by 2030 and projecting approximately $23 billion in mobilized private capital over the next three and a half years. The agency’s lifetime guarantee issuance surpassed $100 billion in April 2026.

Portfolio-level structures are also accelerating capital deployment. In July 2025, MIGA executed a $495 million framework with distributed energy investor CrossBoundary Energy, covering currency inconvertibility and transfer restriction risks for up to 15 years across approximately 100 projects in as many as 20 African countries. In April 2026, MIGA signed a framework with AMEA Power providing up to $1.48 billion in political risk guarantees to support $1.65 billion in equity and quasi-equity investments across 23 renewable energy and battery storage projects.

These frameworks point to an increasingly sophisticated approach to de-risking African energy investment – one that IAE 2027’s Commodities and Capital Allocation Forum will examine by bringing together institutions structuring risk cover with operators and investors deploying capital.

African-Led Institutions Expand the Risk Architecture

The African Trade and Investment Development Insurance (ATIDI), the continent’s only multilateral investment and credit insurer, has supported $93 billion worth of investments and cross-border trade into Africa since its inception in 2001. ATIDI provides coverage against risks including expropriation, currency inconvertibility, political violence and arbitral award default.

The Africa Energy Guarantee Facility, a collaboration between the European Investment Bank, Munich Re and ATIDI, is a dedicated risk-sharing facility expected to facilitate around $1.4 billion in private investment in energy projects across the continent.

The expansion of these instruments reflects a broader shift in how African energy risk is being priced. In many markets, sovereign risk premiums can weigh heavily on investment decisions, making risk transfer an increasingly important part of the financing equation. PRI can reduce the effective cost of capital by shifting non-commercial risks to guarantee providers, helping projects reach the threshold required for private-sector participation.

IAE 2027 Centers the Risk Discussion

The Global and Political Risk Insurance to Secure Credit Guarantees session at IAE 2027 will bring together global trading houses, insurers and financial institutions to examine how commodity flows, risk pricing and insurance mechanisms influence capital deployment into African energy projects.

The session forms part of a broader IAE 2027 program designed to connect African energy projects with the international capital needed to accelerate development, alongside ministerial roundtables, investor meetings and dedicated deal-making sessions spanning the full energy value chain.

To register to attend, visit: https://invest-africa-energy.com/delegate-packages