South Sudan is 14th to join African export credit agency
Source: Middle East Insurance Review | Feb 2018
South Sudan has officially joined the African Trade and Insurance Agency (ATI), becoming the 14th member of the multilateral financial institution which provides export credit insurance, political risk insurance, investment insurance and other financial products to member states.
With financial support from the African Development Bank, South Sudan was able to complete its membership with an initial share capital subscription of US$7.8 million. The move is expected to kickstart the freer flow of insured trade and investment transactions in war-torn South Sudan which depends on revenues from oil to support its economy.
As a member of the ATI, countries are usually supported to cover risks to companies and investors doing business in member countries.
The trade agency also covers investment and trade risks ranging from breach of contract to non-payment and government expropriation. ATI’s specialist insurance products frequently underpin major investments within Africa. The products make cross-border investments attractive to lenders, traders and equity investors and ultimately, they help increase foreign direct investments into Africa.
ATI plays a unique role in African markets – it has both a commercial and a developmental mandate, enabling it to support fragile countries to achieve economic recovery. ATI paves the way for international investors to reap opportunities in these emerging markets. Ultimately, ATI’s presence offers assurance to investors and international financiers that their investments will be protected in the event of specific country risks.
The trade agency has been on a growth trajectory since 2012, averaging 25% growth in profits annually and expanding its footprint across Africa. It is on track to log record results for the sixth consecutive year having supported well in excess of $2 billion in insured trade and investments across Africa in 2017 alone. ATI also plans to pay its first dividends to shareholders this year.
“Our continued geographic and financial growth reflects the significant demand for our products and recognition of our ability to provide strong support to our member countries. We look forward to partnering with South Sudan to help the country build a stable and strong economy,” said Mr George Otieno, CEO of ATI. M