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 USD55 billion [2] since inception and for H2 2019, ATI recorded USD6.4 billion in Gross Exposures and USD349.4 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
14 African Countries

1 Non-African Country

8 Institutional Investors
Official language
English & French
Key people
John Lentaigne, Ag. CEO Benjamin Mugisha, Ag Chief Underwriting Officer
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 14 member countries and 9 other corporate shareholders including UK Export Finance (UKEF), SACE, , the African Development Bank, Trade Development Bank and Atradius[6] and India became the first non-African member country to become a shareholder through its government-backed export credit agency, ECGC[7]

As of H1 2019 (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 14.0 India (ECGC) 11.7 African Development Bank 15.0
Burundi 15.4 African Reinsurance Corporation 1.0
Cote d'Ivoire 13.5 Atradius 0.1
Democratic Republic of Congo 19.5 COMESA 0.1
Ethiopia 6.9 Kenya Reinsurance Corporation 1.0
Ghana 17.6 SACE SpA 10.0
Kenya 28.3 Trade Development Bank 1.0
Madagascar 5.5 UK Export Finance 0.1
Malawi 17.5 ZEP-RE 0.5
Rwanda 8.8
Niger
Nigeria 14.1
South Sudan 9.0
Tanzania 17.0
Togo
Uganda 22.9
Zambia 17.2
Zimbabwe 12.9
ATI's Global Membership & Business Reach

Credit ratings

S&P: Reaffirmed A/Stable (April 2019);[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]

Projects

African Development Bank launches landmark USD500 million Credit Insurance Deal with ATI

Côte d’Ivoire’s SIR financing highlights innovations in Africa’s debt markets [11]

Dar es Salaam to Morogoro railway line[12]

Ethiopian Airlines[13]

Lake Turkana Wind Power project[14]

Regional Liquidity Support Facility[15]

Africa Energy Guarantee Facility[16]

See also

Key documents

H1 2019 Report

2018 Annual Report & Accounts

ATI Treaty

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, Alexis (2 April 2019). "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.
  11. Manders, Shannon (23 January 2019). "Côte d'Ivoire's SIR financing highlights innovations in Africa's debt markets". Global Trade Review. Retrieved 23 January 2019.
  12. 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.
  13. Muchira, Njiraini (7 February 2017). "Ethiopian Airlines gets $159 million loan from AfDB". The East African. Retrieved 6 September 2018.
  14. Wambu, Wainaina (2 June 2015). "Banks uptake of insurance boosts ATI profit to SH327m". Business Daily. Retrieved 6 September 2018.
  15. ESI (18 November 2017). "SSA:IPPs backed by new liquidity support facility". ESI Africa. Retrieved 6 September 2018.
  16. 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.
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