Ecobank, ATI ink risk sharing pact

Ecobank Transnational Incorporated, parent company of the Ecobank Group, and the African Trade Insurance Agency (ATI) have signed a risk sharing agreement that will cushion the bank against exposures associated with lending to customers.

The credit risk insurance provided by ATI will support credit facilities provided to Ecobank customers. This includes commercial loans, invoice discounting facilities, letter of credit confirmations and advance payment guarantees.

"Ecobank and ATI have entered into this risk sharing agreement in countries where both Ecobank and ATI have a presence namely; Benin, Burundi, Democratic Republic of Congo, Kenya, Malawi, Rwanda, Tanzania, Uganda and Zambia," Ecobank Group Head, Financial Institutions and International Organisations, Sebastian Ashong-Katai said.

ATI will extend this facility to any other country that ATI intends to venture into such as, Cote d'Ivoire, Ethiopia, Ghana, Nigeria, South Sudan and Togo, he added.

The partnership with ATI offers Ecobank greater opportunity to extend credit facilities to a number of its customers and grow its market share.

Ecobank Kenya Managing Director Ehouman Kassi said the partnership would add value to the bank's business by providing safety nets for investors' funds and extend guaranteed financial services to customers. "This agreement between Ecobank Transnational Incorporated and ATI is a framework for the sharing of risks between the two entities and its subsidiaries across Africa."

ATI Chief Executive Officer George Otieno said the agency has supported trade and investments in various sectors worth over $17 billion and is keen to double this figure within the next five years.

"This partnership is a step in the right direction," he added.