The African Trade Insurance Agency (ATI) was established in 2000. The initial group of participating countries was: Burundi, Malawi, Rwanda, Kenya, Tanzania, Uganda and Zambia. Both country and corporate membership has since increased to 14 and nine respectively.
The main objective of the ATI is to provide political risk cover to companies, investors, and lenders interested in doing business in Africa. Membership to the ATI is open to all African Union Member States. The agency is supported by the World Bank, which provides low interest loans to participating Member States.
The most important benefit of a regional insurance scheme is its potential to deal with the perception of high levels of risk in doing business in Africa as a region. Many financial institutions and business enterprises associate political risk to the region as a whole and never get to the stage of attempting to distinguish different levels of political risk between individual countries. This perception of high regional political risk deters financial institutions and business enterprises from establishing a presence in the region.
ATI’s current range of insurance products includes:
i. Trade Political Risk Insurance
ii. Comprehensive Trade Political Risk
iii. Foreign Direct Investment Insurance
iv. Project Loan Cover
v. Mobile Assets Cover
vi. Unfair Calling of Bonds and Standby Letters of Credit
vii. Credit Insurance Cover
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