NAIROBI, 18 August 2015 –A lot has changed since the African Trade Insurance Agency (ATI) first opened its doors 15 years ago. At that time, political risk was seen as the key impediment to increasing the continent’s fortunes. Since then, trade has become a focal point for what many see as the golden solution to helping Africa develop to its full economic potential. Lack of knowledge however, remains one of the biggest stumbling blocks to achieving greater trade volumes in Africa.
ATI provides political risk and trade credit insurance to a range of domestic, multilateral and international clients. Although the company began covering trade risks only in 2006, this product is proving to be the most predictable and in-demand. But increasingly the company acknowledged that in order to help African companies become more competitive with this product, they need to invest in disseminating knowledge to change the business culture.
“In our region, banks and companies are not familiar with credit and political risk insurance, which, in many cases, can make it easier to do business. This insurance can replace cash collateral for borrowers, companies can give credit to their clients and explore new markets without fear, importers can get better conditions from foreign suppliers and investors can remove the political risks. Banks and companies need to better understand what is possible and how the insurance works to maximise existing opportunities,” notes Jef Vincent, ATI’s Chief Underwriting Officer.
This was the main impetus behind ATI’s decision to partner with Euromoney Learning Solutions (a division of Euromoney Trading Limited) to develop a tailor-made course that will take participants through a three-day program on Credit, Political Risk Insurance and Export Credit Agency financing. The inaugural program, which was over-subscribed, will run from 18 to 20 August at the Crowne Plaza. Participants include professional staff from:
• Afreximbank (Egypt)
• the African Development Bank (Côte d’Ivoire)
• the African Guarantee Fund (Kenya)
• Africa Re (Nigeria & Kenya)
• East African Development Bank – EADB (Uganda)
• the Export Credit Corporation of South Africa Ltd – ECIC (South Africa)
• The Islamic Corporation for the Insurance of Investment and Export Credit – ICIEC (Saudi Arabia)
• PTA Bank (Kenya & Burundi); and
• Shelter Afrique (Kenya)
“Due to the overwhelming demand seen in this initial course offering and in line with our mandate to develop the Credit and Political Risk insurance market in Africa, we plan to roll out a training program that will offer this course twice a year. We feel that it’s important to invest in building capacity in Africa. Knowledge will continue to be the gateway to our success as a continent,” commented George Otieno, ATI’s Chief Executive Officer.
