African Trade and Investment Development Insurance facts for kids

The African Trade & Investment Development Insurance (ATIDI) is an organization that helps businesses and countries in Africa with trade and investments. It works like an insurance company, but for big projects and deals. ATIDI helps protect against risks that might stop people from investing money or trading goods in Africa. This helps bring more foreign direct investment (money from other countries) to the continent.

ATIDI was started in 2001 by seven countries from COMESA (a group of countries in Eastern and Southern Africa). They got help from The World Bank to set it up. ATIDI is the only organization of its kind in Africa that helps many countries at once. Since it began, ATIDI has supported over USD85 billion in trade and investments in Africa. It helps connect African countries with lenders, investors, traders, and other insurance companies. ATIDI offers different types of insurance, like Political Risk Insurance for investors and Trade Credit Insurance for businesses.

How ATIDI Started

ATIDI was first called the African Trade Insurance Agency (ATI) when it began in 2001. Its main goal was to help bring more investment insurance to Africa. This was important to encourage more foreign direct investments.

Before ATIDI was created, seven COMESA countries received money from the World Bank. They used this money to study why not much foreign money was being invested in their countries. The study found that "political risk" was the biggest worry for investors. Political risk means the chance that government actions or big changes in a country could harm an investment.

Because of this study, the World Bank started a project called "The Regional Trade Facilitation Project I." From this project, ATI was created. ATI officially launched in 2001 in Kampala, Uganda. Its main office, or headquarters, opened in Nairobi, Kenya.

Who Owns and Supports ATIDI

ATIDI is supported by many different members. It has 24 African member countries. It also has one non-African member country and 12 other organizations that are shareholders. Shareholders are like owners who have invested money in ATIDI.

Some of these important shareholders include:

• The African Development Bank
• The Trade Development Bank
• UK Export Finance (UKEF)
• Nippon Export and Investment Insurance (NEXI)

India was the first country outside of Africa to become a shareholder. It joined through its government agency, ECGC. Any country in the African Union, non-African countries, private companies, and other international groups can become members of ATIDI.

What ATIDI Does

ATIDI helps make it safer for businesses and investors to work in Africa. It does this by offering different types of insurance.

Protecting Investments

ATIDI provides insurance that protects investors from "political risks." These risks can include things like:

• Governments changing laws suddenly that affect businesses.
• Governments taking over private businesses.
• Problems with converting local money into foreign money.
• Political violence or wars that damage projects.

By offering this insurance, ATIDI makes investors feel more secure. This encourages them to put their money into projects in Africa, which helps countries grow.

Supporting Trade

ATIDI also helps businesses that trade goods and services. It offers "Trade Credit Insurance" and "Surety Bonds."

• Trade Credit Insurance helps protect sellers if a buyer doesn't pay for goods or services.
• Surety Bonds are like guarantees that a company will complete a project or fulfill a contract.

These services help make trade smoother and safer for companies working across Africa.

ATIDI's Financial Strength

Important financial groups check ATIDI's strength and stability. This is called a "credit rating."

• S&P confirmed ATIDI's rating as A/Stable in April 2024.
• Moody's gave ATIDI a rating of A3/Positive in March 2023.

These high ratings show that ATIDI is seen as a very reliable and strong organization. This helps it attract more partners and support more projects.

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  ATIDI's Global Membership & Business Reach

See also

• African Development Bank
• African Export-Import Bank
• Africa Finance Corporation
• Berne Union
• Chubb Limited
• COMESA
• ECGC
• MIGA
• Mizuho Corporate Bank
• MUFG
• Nippon Export & Investment Insurance (NEXI)
• Sumitomo Mitsui Banking Corporation
• The World Bank
• Trade Development Bank