Dakar, 24 August 2021 – The Republic of Senegal and the African Trade Insurance Agency (ATI) have today concluded and signed a Participation Agreement in fulfilment of the Government of Senegal’s final Membership requirements to join ATI. The participation agreement will be tailed by the payment of a capital of EUR15 million by the European Investment Bank (EIB) on behalf of the Government of Senegal in ATI on the back of a financing agreement concluded and signed between Senegal and EIB in October 2020.
Membership in ATI will enable Senegal to attract competitively priced and longer-term financing. ATI’s investment-grade rating successfully mitigates investment risks and crowd-in investment insurance capacity to cover large borrowing volumes ensuring that Senegal is able to meet the terms of international lenders and investors. ATI is increasingly seen as a strategic development partner to African governments, insuring between 1 – 2% of the annual GDP of its member states as well as participating in some of the continent’s largest strategic development projects with the view of boosting investment and intra-African trade in support of the Continental Free Trade Area (AfCFTA).
Senegal’s membership in ATI is aligned to the country’s strategic plan (2019–2023) which aims to contribute to the achievement of the Government’s national socio-economic development strategy. In addition, local private and public sectors will also benefit through provision of innovative insurance solutions to support trade and investments and will also enhance Senegal’s access to Foreign Direct Investment (FDI) for the country’s economic growth.
ATI’s current exposure in Senegal stands at USD21 million given the Institution’s pan-African mandate permitting the multilateral insurer to support strategic deals in non-members states. This gross exposure is set to increase over the next few years given the business pipeline in Senegal has enquiries worth over USD4 billion – mainly covering the Financial, Energy and Infrastructure sectors.
Following the ratification and signature of the ATI Treaty in March 2020 by the President of Senegal, H.E Macky Sall, the ATI treaty grants the institution a preferred creditor status in Senegal, recognizing ATI’s role as insurer of last resort and thus the need to reimburse ATI for any claims and recoveries made as a result of sovereign obligations or defaults. The Governments of Angola, Burkina Faso, Cameroon, Egypt and Chad are also expected to join ATI’s membership in the coming months as they strive to finalize their various membership requirements.
Quote from S.E.M. Amadou HOTT, Minister of Economy, Planning and Cooperation, Sénégal
The guarantee facilities and services offered by ATI are useful for our country. They can be used as a development catalyst to boost our economic growth in line with our current priorities as stated in the PAP 2A of the PSE. Therefore, with Senegal’s option to make private investment and Public-Private Partnerships (PPP) one of the key components of the PAP 2A of the PSE, ATI will act as a reliable interface between the public and private sectors for solid and mutually beneficial partnerships for our country.
Quote from Manuel MOSES, CEO of ATI
The Republic of Senegal is well underway in being ATI’s 19th member state. We welcome the country’s commitment in enhancing inclusive economic growth which will without doubt pave way for a more sustainable growth and development in Senegal. ATI is committed to deepen our support for Senegal especially during the COVID-19 pandemic, as the country stands to benefit from risk mitigation and credit enhancement services offered by ATI to expand FDIs and trade flows in Senegal.
Press Release 2021/2408/Nairobi
