African Trade Insurance Agency

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 (FDI) into the region. ATI is Africa's only multilateral investment and credit insurer and as of 31 December 2019 it had supported trade and investments into Africa valued at over US$62 billion [2] since inception and for H1 2020, ATI recorded US$6.5 billion in Gross Exposures and US$390.8 million in equity.[3]

African Trade Insurance Agency
Formation2001
TypeTreaty
PurposeMitigation of political, investment and commercial risks in Africa
HeadquartersKenya Re Towers, 5th Floor, Upperhill, Nairobi, Kenya
Region
Africa
ProductsInvestment Risk Insurance

Political Risk Insurance Trade Credit Insurance

Performance Bonds
Membership
18 African Countries

1 Non-African Country

10 Institutional Investors
Official language
English & French
Key people
Manuel Moses, CEO

Benjamin Mugisha, CUO

Deepak Dave, CRO
Websitehttps://www.ati-aca.org

History

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)[4] from which ATI was created. ATI launched in 2001 in Kampala, Uganda [5] and opened its doors in Nairobi, Kenya, ATI's head office.

Shareholders / Members

ATI has 18 member countries and 11 other corporate shareholders like the African Development Bank, Trade Development Bank, UK Export Finance (UKEF), SACE, Chubb and Atradius.[6] India became the first non-African member country to become a shareholder through its government-backed export credit agency, ECGC[7]

As of H1 2020 (Figures are in M US$ and include Capital & Share Premiums)
Paid up Capital Non-African Member Countrties Paid-up Capital Other Shareholders Paid-up Capital
Benin 14.1 India (ECGC) 11.7 African Development Bank 15.0
Burundi 15.4 African Reinsurance Corporation 1.0
Côte d'Ivoire 20.1 Atradius 0.1
Democratic Republic of Congo 19.5 Chubb Limited 10.0
Ethiopia 7.0 COMESA 0.1
Ghana 17.6 Kenya Reinsurance Corporation 1.0
Kenya 28.7 SACE SpA 10.0
Madagascar 7.1 Trade Development Bank 1.0
Malawi 17.5 UK Export Finance 0.1
Rwanda 8.8 ZEP-RE 0.5
Niger 12.5
Nigeria 14.1
South Sudan 9.1 SACE SpA 10.0
Tanzania 17.0 Trade Development Bank 1.0
Togo 12.3 UK Export Finance 0.1
Uganda 23.0 ZEP-RE 0.5
Zambia 17.4
Zimbabwe 13.0
ATI's Global Membership & Business Reach

Credit ratings

S&P: Reaffirmed A/Stable (April 2020);[8] Assigned a Financial Enhancement 'A' rating (refers to ATI's ability and willingness to pay claims) [9]

Moody's: Assigned A3/Stable (May 2019) [10]

See also

References
  1. "Insuring Africa". The Economist. Retrieved 2018-09-04.
  2. 2018 Annual Report & Accounts (PDF). Nairobi, Kenya: ATI. 2019. p. 5.
  3. "H1 2019 Results" (PDF). ATI. 30 June 2019. Archived (PDF) from the original on September 2019. Retrieved 16 September 2019.
  4. The World Bank (3 April 2001). "Regional Trade Facilitation Project 1". World Bank. Retrieved 6 September 2018.
  5. ATI (4 September 2003). "ATI and World Bank Agency join forces to boost African private sector investment". ATI. Retrieved 6 September 2018.
  6. Ngugi, Brian (29 August 2018). "ATI's credit rating upheld on expanding shareholder base". Retrieved 4 September 2018.
  7. The Hindu BusinessLine (19 July 2018). "To invest $10 million in ATI". The Hindu BusinessLine. Retrieved 4 September 2018.
  8. Smith-Juvelis, Alexis (28 April 2020). "African Trade Insurance Agency 'A' Ratings Affirmed On Criteria Revision;Outlook Remains Stable" (PDF). ATI. Archived (PDF) from the original on April 2019. Retrieved 16 September 2019.
  9. Smith, Alexis (25 September 2018). "African Trade Insurance Agency Assigned 'A' Financial Enhancement Rating" (PDF). ATI. Archived (PDF) from the original on 25 September 2019. Retrieved 25 September 2019.
  10. Holmes, Brandan (29 May 2019). "African Trade Insurance Agency New Issuer - Strong balance sheet and preferred creditor status offsets high-risk insured exposures" (PDF). ATI. Archived (PDF) from the original on 29 May 2019. Retrieved 29 May 2019.
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