Downtown Africa
Despite the turbulence and uncertainty caused by the Covid-19 global pandemic, Africa continues to show much needed resilience. This is perhaps evident from the success enjoyed by the African Trade Insurance Agency (ATI) in 2020. At its recent Annual General Meeting (AGM), ATI stated that the company made a net profit growth of 43% in the 2020 financial year. This performance represents the 9th consecutive year in which ATI has enjoyed record results.
According to a press release distributed through APO Group – Africa Newsroom, ATI has continued to increase its capital base and footprint in Africa through a robust, reliable and transformational strategic approach. These efforts received support from the African Development Bank (AfDB), the European Investment Bank (EIB) and the German Development Bank (KfW). The company indicated that its goal is to continue promoting economic transformation, trade and investment, resilience in Africa post Covid.
Indeed, ATI has continued to grow its membership and boost its relevance in the continent. Countries that are expected to soon join the ATI membership include Angola, Burkina Faso, Cameroon, Chad, Egypt, Gabon, Mali and Senegal. In addition, existing members are making plans to secure funding to grow the capital base. All these will lead to increases in the company’s equity and investment earnings and also help improve its Moody’s and Standard & Poor’s credit ratings.
Apart from a record Net Profit of USD 39.4 million, the company also reported a record Gross Exposure of USD 6.3 billion, a record Gross Written Premium of USD 125.6 million, a Return on Capital of 12.6%, and three new shareholder-countries (Niger, Togo and CESCE). Additionally, the company has maintained its A/stable rating by Standard & Poor’s and A3/Stable rating by Moody’s.
Commenting on the company’s success, its CEO, Mr. Manuel Moses, expressed pride at the “track record that ATI has set in the provision of Credit and Political Risk Insurance to support Trade and Investments in Africa” over the past 20 years. He stated that the company will “continue to be the de-facto business risk mitigation tool” to support the African Continental Free Trade Area (AfCFTA) in promoting intra Africa trade. In his own remarks, the outgoing Chairman of ATI’s AGM, Honorable Matia Kasaija (Uganda’s Minister of Finance, Planning and Economic Development) observed that the company is helping African governments to “manage growing debt levels by re-profiling costlier and riskier debts and replacing them with longer term, affordable debts from top rated international commercial lenders.” He continued that this improves “institutional framework for debt liability management” and also leads to “significant cost savings and lowered debt ratios.”
The incoming Chairperson of ATI’s AGM is Hon. Kenneth Ofori-Atta (Ghana’s Minister of Finance and Economic Planning), while the Vice Chairperson is H.E. Dr. Uzziel Ndagijimana (Rwanda’s Minister of Finance and Economic Planning).
This article was written by our Contributor Henry D. He may be reached at henry.d@downtownafrica.com. You too can start earning money by becoming our Independent Reporter or Contributor. Contact us at IR@downtownafrica.com
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