African Trade Insurance Agency (ATI) in conjunction with Barclays Bank Uganda hold a seminar for exporters of products outside Africa
Kampala, Uganda, 9th March 2005
ATI, Africa's only multilateral Export Credit Agency, today held a seminar at the Grand Imperial Hotel for exporters of products outside Africa. Among the participants were; Uganda Fish Processors and Exporters Association (UFPEA); Horticultural Exporters Association of Uganda (HORTEXA); and companies that export fish, horticulture and minerals to Europe and the Far East. These exporters were here to learn on how credit insurance can cover them against non-payment of their buyers abroad. A number of them have suffered losses when their buyers abroad have not paid them due to insolvency or protracted default.
Nyang'ate Makhulo, an underwriter in ATI said: "Typically some 40% of the net current assets of an average exporter's balance sheet consist of trade receivables, or, debtors. The loss of even a part of this vital, unprotected component of a company's balance sheet can easily result in the exporter's own insolvency through absolutely no fault of its own. It is for this reason that this vibrant and very trusting sector of industry in East Africa has begun to realise the extent of risks it runs and the huge benefits of the service that the ATI Export Guarantee Scheme can provide to Uganda's export industry and to those of ATI's other member countries".
Barclays also announced that using the credit insurance offered by ATI, they would in the near future be able to offer post shipment finance, where Barclays could discount invoices without recourse to the exporter. This announcement was received with great excitement by the exporters. Charles Omanga, the Regional Head of Trade Finance said "The product is aimed at providing finance under credit insured export receivables particularly in sectors where open payment terms are the norm, and no other traditional financial instruments exist."
Note to Editors
Every company, from a small-sized to an international group of business, selling on open account, is eligible to subscribe to a credit insurance policy. According to the business and the trade sector in which the company operates, ATI can adapt the policy terms and create a tailor-made contract.
The credit insurance policy covers invoices against the risk of non-payment on both domestic and export markets and ATI in association with Atradius can offer cover in more than 180 countries worldwide.