The Ministry of Finance and German Development Bank KfW have signed a EUR16m ($17.6m) financing agreement that will enable Ghana to secure its shareholding and membership into the African Trade Insurance Agency (ATI), a multilateral investment guarantee institution that mitigates investment risks into Africa.
Ghana’s shareholding in ATI enables the government to further develop the private sector, which is a key reform agenda under the Reform and Investment Partnership Agreement between Ghana and Germany.
Ghana will leverage its membership to ATI to access insurance cover for billions of dollars of investment going forward. With Ghana as a full member, ATI will now be able to insure much greater volumes of transactions in Ghana, which are currently valued at approximately $4bn.
ATI insures investors against non-payment and non-honouring of sovereign and corporate risks. As one of the largest providers of investment and political risk insurance, ATI presently insures upwards of $6bn worth of transactions in Africa.