ATIDI Shapes Future Of Risk MitigationThrough Deep Dive Webinar

In an effort to promote the growing need for effective risk management in Africa, African Trade and Investment Develop­ment Insurance (ATIDI), hosted a webinar focused on the role of de­velopment insurance.

The session brought together me­dia stakeholders from across the con­tinent – to understand how innova­tive insurance solutions are driving sustainable development, mitigating risks and fostering economic growth.

With a special emphasis on the Af­rican market, the session provided a deep dive into strategies that are transforming the landscape of devel­opment insurance.

According to the organisers, “De­velopment Insurance plays a pivotal role in fostering economic growth by providing investment, trade and political risk-mitigation covers de­signed to attract foreign direct in­vestment (FDI) into development projects.

Unlike traditional insurance, de­velopment insurance is a specialised field focused on creating a secure en­vironment for investors by address­ing unique risks.

“ATIDI exemplifies this approach by offering tailored solutions that mitigate risks and provide investors with an added layer of security and confidence. This assurance enables them to engage in critical develop­ment projects, knowing their capi­tal and interests are safeguarded against unforeseen challenges such as political instability, currency in­convertibility and default risks.

“Through its innovative and spe­cialised products, ATIDI is not only facilitating FDI but also driving sus­tainable development across Africa, transforming perceived risks into opportunities for economic advance­ment,” stated in a statement made available to Daily Independent.

ATIDI, legally known as the Af­rican Trade Insurance Agency, was founded in 2001 by African States and with technical and financial backing from COMESA and the World Bank, to cover trade and investment risks of companies doing business in Af­rica.

At that time, the continent attract­ed a bleak USD47 billion of FDI, due in part to perceived or actual risk for interested investors.

Though this figure has improved, Africa’s financing gap remains abys­mal, with USD200 billion in addi­tional investment needed to achieve the Sustainable Development Goals (SDGs) by 2030.

ATIDI has grown to 24 Member States and 13 institutional share­holders. The organization aspires to eventually have all African countries as members.

In pursuit of this goal, ATIDI has established and strengthened strategic partnerships with leading development and financing institu­tions, including the African Union, the African Development Bank, the World Bank Group, the European Investment Bank, KfW and Norad.

ATIDI has earned an A2 rating with a stable outlook from Moody’s and an A rating with a stable outlook from S&P, reflecting its financial strength and credibility.

ATIDI has demonstrated resil­ience amid challenging market conditions, achieving profit growth while strategically managing its risk and exposure.

The organization continues to support trade and investment across Africa with a portfolio of over USD$85 billion since inception.

ATIDI is implementing an ambi­tious 2023-2027 corporate strategy, targeting capital of USD1 billion and membership increase by 25percent, while optimising it processes and systems.

ATIDI has supported several flag­ship projects across Africa, showcas­ing its commitment to sustainable economic growth and financial sta­bility.

The 20 MW Ituka West Nile Ugan­da Ltd solar project promotes renew­able energy access. In Benin and Togo, ATIDI supported the refinanc­ing and re-profiling of existing loans, underscoring ATIDI’s commitment to supporting financial stability and economic reforms.

Furthermore, ATIDI has been supporting key infrastructure trans­actions, including road and irriga­tion projects in Côte d’Ivoire, Tanza­nia, and Senegal among others.

In all these countries, ATIDI’s comprehensive credit risk insur­ance enabled access to longer debt tenures, and a reduced all-in interest rate.