Togo has benefited from ATI’s insurance capacity to the tune of USD305M in the finance and transport sectors
LOMÉ, Togo, April 12, 2022/ — In a bid to raise awareness within the relevant government agencies and private sector about political (investment) and credit risk insurance in Togo, ATI (www.ATI-aca.org) held a series of awareness activities in Lomé, in partnership with Togo’s Ministry of Economy and Finance, the European Investment Bank (EIB) and the KfW Development Bank (KfW). Togo became an ATI Member State in 2020, with an initial shareholding of USD12.5M, thanks to a concessional loan provided by EIB. In 2021, KfW provided additional funding of USD22.6M to increase Togo’s capital in ATI. Togo has benefited from ATI’s insurance capacity to the tune of USD305M in the finance and transport sectors and is on track to get more support.
In a bid to raise awareness within the relevant government agencies and private sector about political (investment) and credit risk insurance in Togo, the African Trade Insurance Agency (ATI) held a series of awareness activities in Lomé, in partnership with Togo’s Ministry of Economy and Finance, the European Investment Bank (EIB) and the KfW Development Bank (KfW). The country is set to benefit further from ATI’s insurance capacity that will help to reduce political (investment) and trade credit risks currently exposed to the country’s exporters, suppliers, lenders and investors – as more stakeholders will understand the benefits of ATI’s insurance products.
Togo became an ATI Member State in 2020, with an initial shareholding of USD12.5M, thanks to a concessional loan provided by EIB. In 2021, KfW provided additional funding of USD19.4M to increase Togo’s capital, thus becoming the highest African government shareholder, with a 10% shareholding. Two years since its completion of membership and the onset of COVID-19 pandemic, which halted the dynamic performance of the country, Togo has benefited from ATI’s insurance capacity to the tune of USD305M in the finance and transport sectors.
The Government of Togo and commercial banks remain ATI’s major clients. For example, Togo obtained a 10 – year commercial loan to reprofile and refinance part of its public debt.
Togo’s economic freedom is ranked 15th in sub-Saharan Africa and remains an attractive economy in Africa. The government continues to seek high-profile fora in which to promote trade and investment opportunities, as it implements its 5-year strategic plan, which seeks to not only develop innovative and sustainable solutions but also to identify financing resources as well as attract more investments with great socio-economic impact and consolidate its strategic positioning.
African Trade Insurance Agency (ATI) Raises Awareness on Political and Trade Credit Risks Insurance in Togo (Source: African Trade Insurance Agency (ATI)
ATI is also keen to support the Government of Togo in its plans to achieve 100% electrification to all by 2030 in order to meet the SDG7, through its Regional Liquidity Facility (RLSF). RLSF, a joint initiative of ATI, KfW and the Norwegian Agency for Development Cooperation (NORAD), is a guarantee instrument designed to address the short-term liquidity risks faced by renewable energy Independent Power Producers (IPPs) that sell electricity to state owned power utilities across Sub-Saharan Africa. ATI is working with the Togolese Ministry of Mines and Energy to sign a Memorandum of Understanding (MoU) to ensure that RLSF is soon available in the country.
Currently, seven of ATI’s Member States have signed the MoU and can benefit from RLSF: Benin, Burundi, Côte d’Ivoire, Madagascar, Malawi, Uganda and Zambia, with the expectation that more of ATI’s twenty member countries will sign up.
Quote from H.E. Sani YAYA, Minister of Economy and Finance, Togo
“The presence of ATI in Lomé this week is as a result of a long process of membership that materialised, thanks to the firm commitment from His Excellency Faure Essozimna GNASSINGBE, President of the Republic, to make Togo an attractive country with a strong, resilient, sustainable and inclusive economy. These events give us the opportunity to develop close collaboration with a key player in the African financial sector. As a financial services hub, hosting the headquarters of major bank holding companies and renowned sub-regional financial institutions, we aim to make ATI a reference partner for private sector financing, in particular the target of SMEs and priority projects for the State in key sectors such as agriculture, infrastructure, energy, transport & logistics, digital, etc.”
African Trade Insurance Agency (ATI) Raises Awareness on Political and Trade Credit Risks Insurance in Togo.(Source: African Trade Insurance Agency (ATI)
Quote from Manuel MOSES, CEO, ATI
“ATI is here to collaborate and help Togo boost its competitiveness and I encourage businesses and investors to turn to ATI for their risk mitigation needs. It is important to note that ATI does not compete with local insurance companies because the services we provide are not typically offered in Africa. We look forward to partnering further with the government and private sector to help the light of economic development burn even brighter in Togo.”
Quote From Ambroise FAYOLLE, Vice – President, EIB
“EIB is a proud supporter of ATI and its mission to attract investment and promote growth in member countries. We are committed to supporting the continuing development of a vibrant African private sector. The expansion of investment insurance to help de-risk member countries and their private sector is an important step towards ensuring that economies reach their full potential, and we congratulate ATI on their contribution to this goal. EIB is expanding its work in Africa with the launch in 2022 of EIB Global, our branch dedicated to international partnerships and development.”
Quote from Sonja WASSERMANN, Country Director, KfW, Togo
“The capital increase of Togo at ATI is KfW’s first project within the reform partnership between Germany and Togo which has a strong focus on the sustainable development of the Togolese economy. With its unique set of investment and trade credit insurance products, ATI is one of the key agencies in Africa to reduce investment and trade credit risks for investors, exporters and other economic actors active in the region. The capital increase of Togo will significantly enhance ATI’s insurance capacities in the Togolese market and increase the attractiveness of Togo as an investment destination.”