The African Trade Insurance (ATI) Agency has announced that it can now begin underwriting policies in Ghana and Benin.
The only multilateral insurer in Africa gave the notice in a press release copied to ghanabusinessnews.com.
The insurer which was founded by African States to provide political risk, trade credit risk insurance and political violence and terrorism and sabotage cover to protect African investments and trade, says the decision to start business in West Africa was made possible by the World Bank’s provision of a loan to Ghana and a grant to Benin through International Development Assistance (IDA), its concessionary lending window.
According to ATI, the $20 million World Bank loan will be used to fund Ghana’s membership into ATI allowing the insurer to cover projects in Ghana up to $500 million with reinsurance support. This ATI said will make “Ghana one of its largest African Country Shareholders.”
ATI indicated that during its June 14 Board meeting in Washington, the World Bank also approved a $7.5 million grant to Benin for its membership into ATI.
It says it has began preparations to enter the West African market with an aggressive marketing campaign that will target the region’s banks, insurers, investors and traders.
Commenting on the development, ATI’s Chief Executive, George Otieno, said, “With Ghana and Benin on board, ATI is in an excellent position to jump to the next level where we can comfortably double or possibly triple our business in the next 5 years.”
The insurer says it has supported over $2.5 billion in trade and investments across Africa in sectors such as agribusiness, energy, exports, housing, infrastructure manufacturing, mining and telecommunications.
By Emmanuel K. Dogbevi