Ethiopia, Ivory Coast and Benin to join the African Trade Insurance Agency
The countries received a loan from the AfDB to cover the subscription fee.Ethiopia, Benin and Ivory Coast are to join the African Trade Insurance Agency (ATI) thanks to a $30 million loan from the African Development Bank (AfDB) to cover the subscription fee.
ATI is an insurance agency with 40 member states created in partnership with the World Bank that guarantees trade exchanges between countries.
It provides medium to long term credit and political risk insurance, as well as other risk mitigation products to the Bank's Regional Member Countries (RMCs) and related public and private sector actors.
The membership improves trade flow and access to investments for its members as it lowers risk and strengthens trust and confidence in the trade exchanges.
ATI estimates that the combined facility will unlock up to $1.8 billion of commercial, trade credit and political risk underwriting cover at any one time in the countries.
The three countries need to take further steps to become a member. Abebe Taddesse, project manager at the Ethiopian Ministry of Finance & Economic Development, told Geeska Africa that the Ethiopian parliament must ratify the ATI treaty and obtain approval from the National Bank of Ethiopia for the sale of the political risk products in the country.