The private sector and insurance industry held a joint press conference today encouraging the government to complete the membership process which began in 2009. The Commissioner of Insurance, Lydia Lariba and the Director General of the Private Enterprise Foundation, Nana Osei-Bonsu led participants noting that Ghana stands to benefit from $100 million in added capacity from the African Trade Insurance Agency (ATI) that with reinsurance could support trade and investment transactions valued at hundreds of millions of dollars.
The event was part of an outreach initiative that was capped by a high-level dialogue with the business community and government officials. During the workshop participants discussed the gaps that ATI could help fill in the current market. These include challenges such as lack of access to credit, lack of affordable financing for Small and Medium Sized Enterprises, a strained manufacturing base and an insurance industry in need of added capacity.
“Ghana is one of the most important economies in Africa. Since the membership process began, we’ve received enquiries valued at over $1 billion for transactions directed at the Ghana market so we know there is demand. The next major step now is for Ghana to complete the membership process it started back in 2009 so they can start benefiting from some of this business,” remarked George Otieno, ATI’s Chief Executive Officer.
The African Trade Insurance is a Pan-African organisation founded in 2001 by African governments to help them attract more investments and increase trade. With the support of international financial partners, the World Bank and the African Development Bank, ATI offers insurance products that mitigate the risks faced by investors and others doing business in Africa. To date, ATI has supported trade and investments into their member countries valued at over $10 billion, and since 2008, ATI has been the highest rated insurer in Africa with an ‘A/Stable’ rating from Standard & Poor’s.
In West Africa, the West African Insurance Companies Association has been an important partner supporting ATI’s efforts to connect with the insurance industry and other key members of the business community. The ECOWAS block of countries recently also pledged their support to work with ATI to provide trade and political risk mitigation products in West African countries.
Ghana’s membership was scheduled for completion in 2012 but was slowed by its national election. Demand from international and local Ghanaian companies prompted the renewed negotiations with the government that ATI hopes will lead to complete membership by the end of the year.
ACCRA, 22 October, 2013
