Tunis, 28 August 2022 – The African Trade Insurance Agency (ATI) and Japan’s Export Credit Agency – Nippon Export and Investment Insurance (NEXI), have signed an addendum to their 2019 Memorandum of Understanding (MoU) whereby the two organizations expressed their willingness to strengthen and further expand their existing cooperation. The MoU was signed during the eighth Tokyo International Conference on African Development (TICAD 8) held in Tunisia.
During TICAD7 hosted in Japan in 2019, the two organizations announced the establishment of a “Japan Desk” in ATI’s Nairobi office to support African projects so that Japanese companies can obtain easy access to reliable risk mitigation solutions provided by ATI. To date, the Japan desk has received business enquiries valued at over USD1.5 billion in the financial services, infrastructure, manufacturing and telecommunication sectors in Africa.
The most recent project supported by ATI’s Japan desk was a 10-year Foreign Direct Investment Risk Insurance cover issued to Sumitomo Corporation on its investment in a new telecom company in Ethiopia – Safaricom Telecommunications Ethiopia Plc (STE), where NEXI provided reinsurance support to ATI. The project is considered one of the single largest Foreign Direct Investment (FDI) in Ethiopia.
To further consolidate its long-standing and growing partnership with ATI, NEXI will also be investing equity in ATI. The deal is anticipated to be finalized in a year’s time, where NEXI is expected to inject capital of approximately USD16 million. The equity investment will cement ATI and NEXI’s strategic partnership in a bid to forge a lasting relationship in furtherance to their desire to co-ordinate their activities and seek mutual cooperation in promoting trade and investment in Africa.
In addition to the MoU signed with NEXI, ATI also signed addendums to existing MoUs with two leading banks in Japan – Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Banking Corporation (SMBC). This signals strong will and desire by the Japanese to develop further business in the continent, which ATI sees as key to unlocking even more Japanese investments into Africa.
Today, I am truly honored to be able to announce that we signed this MOU addendum with ATI. NEXI will duly execute the necessary procedure to become an ATI shareholder and continue to work closely with ATI to encourage more Japanese companies to make international trade and investments in Africa.
ATI and NEXI have had a long-standing partnership over the years, and I am elated that our cooperation continues to grow. As Japan continues to magnify its footprint in Africa, we are confident that this MoU will greatly enhance both parties’ ability to support trade and investments into the continent.
