African Trade Insurance Agency

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

The African Trade Insurance Agency, also known as ATI, was established in 2001[1] by seven COMESA countries and with the technical and financial backing of The World Bank to provide insurance against political and commercial risks in order to attract foreign direct investments into the region. ATI is Africa's only multilateral investment and credit insurer and as of 31 December 2017 it had supported trade and investments into Africa valued at over USD35 billion since inception and for FYE 2017, ATI recorded USD2.4 billion in Gross Exposures and USD242 million in equity [2].

History[edit]

ATI was created in 2001 to help drive much needed investment insurance capacity to Africa in order to support higher levels of foreign direct investments[1]. Seven COMESA countries obtained a grant from the World Bank to conduct a study to look at factors contributing the low levels of FDI to their countries. The study revealed Political Risk to be the main constraint and the primary concern of prospective investors. The study expanded into a World Bank project (The Regional Trade Facilitation Project I)[3] from which the African Trade Insurance Agency (ATI) was created. ATI launched in 2001 in Kampala, Uganda [4] and opened its doors in Nairobi, Kenya, ATI's head office.

Shareholders / Members[edit]

ATI has 14 member countries and 9 other corporate shareholders including UK Export Finance (UKEF), SACE, , the African Development Bank, Trade Development Bank and Atradius[5] and India became the first non-African member country to become a shareholder through its government-backed export credit agency, ECGC[6]

As of 31 December 2017 (in thousands of USD)
Member Countries Paid up Capital Other Shareholders Paid up Capital
Benin 13,902 African Development Bank 15,000
Burundi 15,390 African Reinsurance Corporation 1,000
Cote d'Ivoire 13,510 Atradius 100
Democratic Republic of Congo 19,244 COMESA 100
Ethiopia 6,937 Kenya Reinsurance Corporation 1,000
Kenya 28,315 SACE SpA 10,000
Madagascar 1,000 Trade Development Bank 1,000
Malawi 17,275 UK Export Finance 100
Rwanda 8,779 ZEP-RE 500
South Sudan 7,816
Tanzania 12,770
Uganda 22,937
Zambia 16,960
Zimbabwe 12,815

Credit rating[edit]

In August 2018 S&P reaffirmed ATI's credit rating of 'A/Stable'[7]

Projects[edit]

Dar es Salaam to Morogoro railway line[8]

Ethiopian Airlines[9]

Lake Turkana Wind Power project[10]

Regional Liquidity Support Facility[11]

Africa Energy Guarantee Facility[12]

Location[edit]

ATI is based in Nairobi, Kenya with additional offices in Dar es Salaam, Tanzania; Kampala, Uganda; and Lusaka, Zambia[13] .

See also[edit]

External links[edit]

ATI's official website

References[edit]

  1. ^ a b "Insuring Africa". The Economist. Retrieved 2018-09-04.
  2. ^ Ndlovu, Prosper (20 July 2018). "ATI provides $35bn cover to Comesa businesses". The Herald. Retrieved 4 September 2018.
  3. ^ The World Bank (3 April 2001). "Regional Trade Facilitation Project 1". World Bank. Retrieved 6 September 2018.
  4. ^ ATI (4 September 2003). "ATI and World Bank Agency join forces to boost African private sector investment". ATI. Retrieved 6 September 2018.
  5. ^ Ngugi, Brian (29 August 2018). "ATI's credit rating upheld on expanding shareholder base". Retrieved 4 September 2018.
  6. ^ The Hindu BusinessLine (19 July 2018). "To invest $10 million in ATI". The Hindu BusinessLine. Retrieved 4 September 2018.
  7. ^ Ngugi, Brian (29 August 2018). "ATI's credit rating upheld on expanding shareholder base". Daily Nation. Retrieved 4 September 2018.
  8. ^ Manders, Shannon (29 August 2018). "Innovative structure for Tanzanian project to kick off surety in Africa's credit insurance market". Global Trade Review. Retrieved 6 September 2018.
  9. ^ Muchira, Njiraini (7 February 2017). "Ethiopian Airlines gets $159 million loan from AfDB". The East African. Retrieved 6 September 2018.
  10. ^ Wambu, Wainaina (2 June 2015). "Banks uptake of insurance boosts ATI profit to SH327m". Business Daily. Retrieved 6 September 2018.
  11. ^ ESI (18 November 2017). "SSA:IPPs backed by new liquidity support facility". ESI Africa. Retrieved 6 September 2018.
  12. ^ European Investment Bank (20 March 2018). "First long tenor political risk insurance to unlock USD1.4 billion clean energy investment across Africa". EIB. Retrieved 6 September 2018.
  13. ^ "ATI contact page". ATI. Retrieved 4 September 2018.