Kampala, Uganda, 9th March 2005
ATI, Africa’s only multilateral Export Credit Agency, today held a seminar at the Grand Imperial Hotel for exporters of products outside Africa. Among the participants were; Uganda Fish Processors and Exporters Association (UFPEA); Horticultural Exporters Association of Uganda (HORTEXA); and companies that export fish, horticulture and minerals to Europe and the Far East. These exporters were here to learn on how credit insurance can cover them against non-payment of their buyers abroad. A number of them have suffered losses when their buyers abroad have not paid them due to insolvency or protracted default.
Nyang’ate Makhulo, an underwriter in ATI said: “Typically some 40% of the net current assets of an average exporter’s balance sheet consist of trade receivables, or, debtors. The loss of even a part of this vital, unprotected component of a company’s balance sheet can easily result in the exporter’s own insolvency through absolutely no fault of its own. It is for this reason that this vibrant and very trusting sector of industry in East Africa has begun to realise the extent of risks it runs and the huge benefits of the service that the ATI Export Guarantee Scheme can provide to Uganda’s export industry and to those of ATI’s other member countries”.
Barclays also announced that using the credit insurance offered by ATI, they would in the near future be able to offer post shipment finance, where Barclays could discount invoices without recourse to the exporter. This announcement was received with great excitement by the exporters. Charles Omanga, the Regional Head of Trade Finance said “The product is aimed at providing finance under credit insured export receivables particularly in sectors where open payment terms are the norm, and no other traditional financial instruments exist.”
Note to Editors
Under its Export Guarantee Scheme, ATI entered into a Partnership agreement with Atradius, in order to provide credit insurance for local, export and import transactions. Atradius, formally the Gerling NCM Group is an integrated credit insurer with a global network, offering comprehensive solutions in risk transfer, financing and related services. Atradius is the second largest credit insurer worldwide generating premium income well in excess of US$ 1 billion per annum. The credit insurance cover offered by ATI and Atradius protects a company’s balance sheet against short term trade receivable losses, but also allows exporters to continuously monitor and analyse the financial health of their customers and prospects. It also brings with it professional credit check of customers, and debt collection service. If an invoice remains unpaid, Atradius recovers the exporter’s debts on their behalf. The shareholders of Atradius are Swiss Re, Deutsche Bank, Sal. Oppenheim et Cie., Gerling NCM Pension Trust and the Gerling Group.
Every company, from a small-sized to an international group of business, selling on open account, is eligible to subscribe to a credit insurance policy. According to the business and the trade sector in which the company operates, ATI can adapt the policy terms and create a tailor-made contract.
The credit insurance policy covers invoices against the risk of non-payment on both domestic and export markets and ATI in association with Atradius can offer cover in more than 180 countries worldwide.
