ATI is officially open for business in the Republic of Ethiopia
NAIROBI, 7 October, 2016 – The African Trade Insurance Agency (ATI) announced today that it is ready to begin supporting transactions in Ethiopia. After a year-long process that was supported with funds from the African Development Bank, Ethiopia’s membership has now been finalised.
“With growth of 10% in the past decade and investors clamouring to enter the market, we feel we are in a good position to help Ethiopia leverage this momentum. ATI will help to de-risk transactions so that Ethiopia can attract even more investments while building up its export base,” commented George Otieno, ATI’s Chief Executive Officer.
The country’s membership is potentially a game changer for the pan-African insurer with prospects that a pipeline estimated at half a billion USD could double the company’s business in the next few years. Prospective projects include a 400 MW solar energy plant that would contribute to the country’s carbon neutral growth plan to improve the living conditions of its citizens.
ATI provides political, investment and trade credit risk insurance to clients doing business in its member countries. The products are created to help countries attract more investments and to promote domestic trade by providing insurance that mitigates against currency inconvertibility and exchange transfer, expropriation, trade embargoes, non-honouring of contracts and payment default risks among others.
To date ATI has helped its member countries attract $21.5 billion worth of trade and investments into their economies.
ATI plans to leverage Ethiopia’s initial US$7.5 million subscription in order to insure over US$3 billion worth of projects in Ethiopia.
As ATI starts to close deals and build on its existing pipeline in the coming months, the company also plans to host an official launch in Addis.