Political Risk / Investment Insurance

Investment insurance includes an extensive range of products designed to cover international investments. These risks include political risks associated with unlawful or questionable government actions that impact a company’s ability to conduct business.

Investment insurance also covers non-payment risks, wrongful calls on performance bonds, and damage to your property or loss of revenue from business interruption due to politically motivated violence or terrorism and sabotage events.

You may need to consider ATIDI’s Investment solutions if you answer yes to one of the following questions:

• Do you sell your products or services to governments or government agencies?
• Have you ever experienced overdue payments on government contracts?
• Has your licence suddenly been cancelled due to a change in government legislation?
• Have you ever experienced any losses due to bad debt?
• Do you have any outstanding commercial debts that you cannot collect?
• Do you need help to assess the financial status of your customers?

ATIDI’s solutions have many benefits designed to increase your ability to achieve success in Africa:

• Protection against political risks (government actions affecting foreign direct investments)
• Cover against damage or loss of your goods due to political violence, terrorism & sabotage
• Increasing access to more accessible financing
• Access to supplier credit
• A solution to currency issues on cross-border transactions
• Non-payment of goods supplied on credit
• Access to credit information which can be crucial when securing new clients
• Increased knowledge about credit insurance facilities and enhanced credit management within your company

Clients with projects, investments, assets and contracts in foreign markets typically require a broad range of risk solutions.

For investors, ATIDI has supported many types of investments, including equity participation in projects or companies and investment loans. For medium to long-term infrastructure loans, ATIDI can cover repayment periods of up to 15 years. ATIDI can protect your investment against loss resulting from risks that are triggered by political or government events as well as commercial or non-payment risks.

ATIDI covers these risks:

• Breach of contract: non-fulfillment or non-compliance with agreements or contracts entered into by the government bodies within the host country
• Expropriation: all forms of nationalisation and confiscation from the company in the host country
• Currency Inconvertibility and Transfer Restrictions: an inability to convert or transfer invested funds as a result of currency shortages, foreign exchange restrictions or a moratorium imposed by the host country
• Arbitration Award Default: designed to compensate following a dispute resolution mechanism where an award is given against the host country for breach of contractual obligations
• Wrongful calls on your bonds: International business commonly demands that you post a performance bond, which could face the risk of being wrongfully called. You can protect your investments against this uncertainty with a risk solution that frees up your working capital which you would otherwise have to use to reimburse your bank
• War and Civil Disturbance: Damage to Assets or Interruption to Business due to political violence, war and civil disturbance.
• Embargo: An embargo or sanctions against the host country impacts the investment.