Local insurer signs partnership deal with South African firm

By John Oyuke
Multilateral insurer, African Trade Insurance Agency (ATI) has entered into partnership with Export Credit Insurance Corporation (ECIC) of South Africa to help promote trade and reduce business risks and costs of doing business in Africa.

The agreement between the Nairobi-based trade credit and investment insurer and South African counterpart paves the way for both institutions to co-insure one another on projects within member countries of the multilateral export credit and political risk agency.

The agreement signed by ATI’s Chief Executive, George Otieno and ECIC Chief Operating Officer Mandisi Nkuhlu in Nairobi last week, adds to ATI’s growing list of countries and organisations with which it is partnering to increase insurance capacity and ultimately investments within the continent.

ATI has membership of over ten African countries, as well as financial institutions like World Bank, African Development Bank and major companies in the private sector.

Huge increase
The agreement was signed on the sidelines of ATI’s 3rd annual Roundtable on Impact of Political and Trade Credit Risks on Africa’s Trade and Investments. The firm’s annual results released during the AGM showed 112 per cent increase in their main business line — Gross Written Premium.

Otieno attributed the increase from $4.8 million to $10 million to growing infrastructure development needs from countries within Africa and cautious investors seeking cover to shield their business interests, among other factors.

ATI provides export credit, political risk and investment insurance and other financial products to help reduce the business risks and costs of doing business in Africa.