ATI underwrites $300m in investments

Business Reporters
The Africa Trade Insurance (ATI) has underwritten investment transactions close to $300 million in Zimbabwe since the country became a member last year. ATI is a pan-African institution that provides risk solutions to companies, investors and lenders interested in doing business in Africa. With deep roots in Africa, the firm is best positioned to understand and assess the risks here and to help mitigate them. Zimbabwe became a signatory to the ATI in 2016 with support from the African Development Bank, which paid $15 million for the country’s membership. AFDB contributed $2,9 million with Government putting in $10 million getting an allocation of 128 shares.

Speaking at the launch of ATI Insurance in Zimbabwe, Industry and Commerce Minister Dr Mike Bimha, said ATI has already supported trade and investments in Zimbabwe above average.

“I have noted that since Zimbabwe’s full membership to ATI in 2016, the country has already started accessing services with ATI having underwritten investments transactions close to $200 million. I also noted that in a very short space of time, ATI has already supported trade and investments in Zimbabwe above average of other ATI Member States with sectors supported being financial services and energy,” said Dr Bimha.

“With more projects on the pipeline for support, I want to commend ATI for their commitment to facilitate trade and investment and doing business in Zimbabwe,” he said. Minister Bimha said the country’s membership to ATI will contribute to Zimbabwe’s current efforts to improve investor confidence and thereby unlocking more foreign direct investment. He said the country anticipates diversifying exports into risky markets as a result of insurance cover for political and commercial risks by the ATI.

Dr Bimha said the local business community must continuously engage with ATI and derive maximum benefits from their insurance products and services. ATI CEO, Mr George Otieno, said despite Zimbabwe joining the agency last year, the country has become an integral part of the group and has benefited over $300 million to cover all sorts of risks. Africa’s export credit agency provides political and trade credit risk insurance products with the objective of reducing business risk and cost of doing business on the continent.

“Zimbabwe had raised over $10 million and has completed all its obligations to become a member state,” Mr Otieno said.

He said ATI aims to help increase investments into African member countries and two-way trade flows between Africa and the world.

Analysts suggest that ATI’s membership would enhance Zimbabwe’s capacity to borrow from international financial markets by significantly reducing the country’s sovereign risk premium arising from negative perception by the international community. Joining the ATI ties in with Government’s thrust of reducing the cost of doing business and mobilising resources from international financial institutions to help reboot the economy which has shown signs of stress.

ATI has 13 African member countries that include Benin, Burundi, Democratic Republic of Congo, Madagascar, Malawi, Rwanda, Tanzania, Uganda, Kenya, Zambia, Ethiopia and Zimbabwe. Its other members include AfDB, Africa Reinsurance Corporation, Atradius Group, SACE, Comesa, PTA Bank and Zep Re. ATI was launched in 2001 with the financial and technical support of the World Bank and the backing of seven African countries. Since 2003, it has supported over $25 billion worth of trade and investments across the continent. The membership has expanded over the years and ATI plans to attract more African member countries and international financial institutions.