Friday, January 22, 2010

Insuring the Future: Mitigating risk in African investments

On the 14th of January, Domina Buzingo (below, left), Resident Representative for the AfDB in Kenya, and Stewart Kinloch (below, right), acting CEO of the African Trade Insurance Company (ATI), convened to sign a USD 1,000,000 Fund for African Private Sector Assistance (FAPA) grant for the African Trade Insurance Company (ATI). As the Government of Japan has provided the funds for FAPA, the Japanese Ambassador to Kenya, his excellency Shigeo Iwatani (below, center), was present at the signing:

The goal of ATI, which has been operational since 2001, is to directly increase FDI and trade in Africa by providing market instruments to mitigate the disincentives arising from political and trade credit risk. ATI will provide insurance on investments and trade agreements. ATI is the only insurance agency in Africa offering political, whole trade and credit risk insurance. The Technical Assistance funding will go to ATI alongside a USD 10 million equity investment by the AfDB and USD 100 million in concessional loans and grants from the African Development Fund and the World Bank.

Technical Assistance for ATI funded through FAPA will be coordinated alongside funding provided by these other organizations: