African Trade Insurance Agency expands membership to bring in new business
The African Trade Insurance Agency (ATI), supported by funds from the African Development Bank, has said it is ready to begin covering transactions in Ethiopia and Zimbabwe, with both countries joining ATI as members.
ATI has a current project pipeline estimated at over $1 billion, which is expected to double in the short term based on existing demand for its products.
ATI was established in 2001 by African governments and a range of other shareholders with the aim of easing the concerns of investors by providing a range of investment and political risk insurance products.
ATI believes the announcement will give investors crucial comfort to start or continue doing business in these countries.
According to ATI, Zimbabwe’s membership would give a boost to the country’s quest to attract foreign direct investments.
“I have no doubt that our membership will contribute to Zimbabwe’s current efforts to reduce the cost of doing business by making political risk and credit insurance, as well as non-payment and FDI cover readily available to exporters, importers and investors,” said Mike Bimha, Zimbabwe’s industry and commerce minister.
Gabriel Negatu, regional director of African Development Bank, added: “The African Development Bank is pleased to have financed Ethiopia and Zimbabwe’s membership into ATI.
The affiliation with ATI will attract prospective investors with additional guarantees to participate in the priority areas of powering & lighting, feeding, industrializing and integrating both countries. It will also help improve the livelihood of millions of Ethiopians and Zimbabweans.”
ATI’s project pipeline include a 400 megawatt solar energy plant in Ethiopia that aims to contribute to the country’s carbon neutral growth plan to improve the living conditions of its citizens.
In Zimbabwe, ATI is considering a line of credit targeting commercial banks that will allow them to increase their lending volumes.
George Otieno, CEO of ATI, commented: “I believe our entry into Ethiopia and Zimbabwe, particularly at this time, sends a powerful message to investors. Our presence signals that both countries are open for business because we are standing beside them as a credible and internationally-respected insurer with an ‘A’ rating from S&P. This should be positive news to anyone interested in doing business in the either country.”
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