Nairobi, Madrid – February 15th, 2021: The Spanish Export Credit Agency, CESCE, has acquired shares in the African Trade Insurance Agency (ATI), to become its 30th shareholder. The investment deal concluded in December 2020, with CESCE making a capital contribution of US$ 1.3 million.
The equity investment aims at promoting beneficial synergies and mutual cooperation to cover political and commercial risks between Spanish exporters and investors and their African counterparties. CESCE’s investment will support ATI in fostering sustainable development in Africa and increase the geographical and business representation of the two institutions in the continent.
CESCE’s shareholding into ATI comes at a time when the global economy faces unique challenges as a result of the ongoing COVID-19 pandemic. Trade and investments have contracted and many markets remain in a state of heightened uncertainty due to suppressed demand. The investment highlights ATI’s continuous commitment to forming partnerships that enhance trade and investments on the African continent.
CESCE is a commercial risk management company whose majority shareholders are the Spanish government and prominent Spanish banks and insurance companies. Acting as the Spanish Export Credit Agency, CESCE provides coverage of political and commercial risks derived from investments abroad with the aim of supporting the internationalization of Spanish enterprises. CESCE is rated A-, with a stable outlook from S&P Global.
“CESCE´s entry into ATI´s capital will enhance the State´s coverage of the operations of Spanish companies in Africa and represents an important advance for our operations and strategy in the area”, says Beatriz Reguero, Chief Operating Officer of CESCE´s State Account Business.
ATI’s CEO, Manuel Moses, noted “We welcome CESCE into the ATI family. This investment will not only increase our capacity to support businesses in Africa but will also enhance the transfer of skills, expertise and technology from Spain to Africa, thus strengthening economic growth while lowering the cost of doing business on the continent. Furthermore, the transfer of skills and technology will contribute towards increased value addition for locally manufactured goods and enhanced trade, thereby supporting the goals of Africa’s Continental Free Trade Area (AfCFTA).”
As at December 2020, ATI’s equity was US$ 396.5 million, a 14% increase over December 2019. This is expected to grow by an additional 23% as ATI expects five new shareholders by the end of 2021.
