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This article was produced with the support of ATIDI
Ahead of its 25th Annual General Meeting in Luanda, Angola, the African Trade and Insurance Agency, now rebranded as the African Trade and Investment Development Insurance (ATIDI) has affirmed its commitment to facilitating investment and growth in Africa by ATIDI, highlighted its commitment to the continent and the advantages, as highlighted by its activities in Angola, of being a shareholder through its ability to leverage its insurance capacity to raise capital at competitive rates.
Established in 2001 to encourage foreign direct investment into Africa by insuring political and commercial risks which have typically deterred investors from considering Africa, ATIDI has grown considerably. According to its latest financial statement, as of December 2024, the institution had a capital base of $791.5m, a 13% increase on the previous year and intends to reach a billion dollar capital base in the next three years. These latest financials also show that ATIDI supported $8.9bn of trade and investment in 2024, spread across the continent. This impressive performance was achieved against a backdrop of $1billion net exposure, highlighted ATIDI’s ability to leverage its own capacity by mobilising reinsurance from regional and international insurance markets .
Speaking at the press briefing, Annabelle Buzingo, Senior Underwriter at ATIDI, said that it is able to support investments due to its strong rating and deep understanding of the African terrain. “We have boots on the ground, with a presence in a number of countries in. We are present and we understand the risk. This is why we’re able to provide cover for investors coming on the continent,” she stressed.
Backed by 24 member states and 13 institutional investors including the African Development Bank and Africa Re as well as international shareholders, such as Chubb Limited, the Japanese export credit agency NEXI and India’s export credit agency ECGC amongst others, ATIDI provides risk mitigation for debt and equity investments as well as trade transactions across Africa.
Coverage includes political and investment risks such as currency inconvertibility, war, expropriation, nationalisation, sovereign and sub-sovereign non-payment, civil unrest and the risk of arbitral award default. In addition, ATIDI offers protection against commercial risks including insolvency and prolonged default. To support infrastructure and construction projects, the institution provides cover for performance-related risks, including bid bonds and performance guarantees. ATIDI has also successfully rolled out a liquidity instrument, the Regional Liquidity Support Facility (RLSF), which protects renewable energy independent power producers from short-term payment delays from utilities and facilitates bankability in the sector.
In Angola, ATIDI has provided over $1.5bn in risk coverage across key sectors including water, energy and gas and construction. “Together with the International Bank for Reconstruction and Development at the World Bank, and later BPI France, we secured financing for the Bita Water project of $1.1bn . We have also recently raised $200m to cover the rehabilitation of the Estrada Nacional [road project],” Buzingo recounted. The financing for the Bita Water project had a longer tenor and was priced at more than 500 basis points lower than the yield the country was paying at the time on international markets.
Noting that ATIDI has wide developmental impacts, Buzingo called for ATIDI shareholders to respect its Preferred Creditor Status. “It is the reason we are able to deliver leverage on our capital and impactful projects and transactions in Africa,” she explained.
Benjamin Mugisha, ATIDI’s Chief Underwriting Officer, reiterated the institution’s commitment to the Angolan economy, including through a portfolio product for SMEs. “African businesses are predominantly SMEs, so we will be talking to local banks to see how we can help them to develop even more support for SMEs. This is because the backbone of African economies will be Africans themselves and so it’s very important to help those SMEs,” he said.
Mugisha added that ATIDI is keen to support not just inward flows of investment but also trade between African countries and the outside world. Through its SME programme and other private sector initiatives, ATIDI hopes to make financing available to private sector companies. “So with these mechanisms and of course, with many other partners in this space, we hope we can help to address some of the systemic challenges that we have on the continent,” he asserted. Asked how ATIDI balanced developmental priorities and also profits, Mugisha said that any institution needs to be sustainable and profitability is a testament to the organisation fulfilling its founders’ vision in a sustainable way. With a strong capital base, ATIDI will be able to continue to grow and sustainably support its clients across the continent.
