€1 Billion Private Sector Investment for Western and Central African Governments and € 60 Million consensus from the European Investment Bank to boost Western and Central African Administrations to Laminate either their Membership Prominence or Bolster their existing Participation in the African Trade Insurance Agency before the roll out of 2020
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Private sector investment in Benin, Burkina Faso, Chad and Senegal, will be enhanced seeking European Investment Bank assistance for the nations in their membership and share capital improvement in the African Trade Insurance Agency (ATI). In furtherance of this, the West and Central African nations of Burkina, Chad and Senegal will enlist eighteen African states including Benin, who is already a member, where business investment, job creation and access to finance has been increased by targeted investment insurance. As seen elsewhere across Africa, ATI membership will ameliorate to address the economic, social and health challenges caused by the Novel Coronavirus (COVID-19).
Therefore, pacts for €60 million from the European Investment Bank (EIB) will foster, the four nations to either evolve full members or boost their existing participation in ATI before the end of 2020. This is anticipated to clout approximately €1 billion of new private sector investment. Quite recently, the EIB backing for transformational investment was conceded upon, during a virtual seal ceremony accompanied by Toavina Ramamonjiarisoa – Acting Chief Executive Officer of ATI and Maria Shaw Barragan – Director for EIB operations in Africa, the Caribbean and the Pacific. “Business activity across West Africa will be transformed following this key agreement between ATI and the European Investment Bank. By joining ATI, Burkina, Chad and Senegal will be able to accelerate crucial investment and better cope with the pandemic. Benin, who has been a member since 2012, will further benefit from ATI’s products, through its new capital increase. Over the last twenty years, ATI has supported more than USD$62 billion of investments and trade across Africa. With ATI’s innovative solutions, member states have been able to attract competitively priced and longer-term financing owing to strong credit ratings, S&P ‘A’ and Moody’s ‘A3’, and ability to mobilize highly-rated reinsurance capacity.” Stated, Toavina Ramamonjiarisoa ATI’s Acting Chief Executive Officer.
“The European Investment Bank is pleased to enable Burkina Faso, Chad and Senegal to become full members of the African Trade Insurance Agency and Benin to increase its stake in ATI. This will facilitate and expand private sector and clean energy investment across West Africa and the Sahel. Improved insurance will create jobs and help business and entrepreneurs to better address challenges caused by COVID-19. As the bank of the European Union, the European Investment Bank is committed to supporting high-impact investment across Africa. The EIB is pleased to further
strengthen our cooperation with ATI to ensure that proven trade and investment insurance expertise benefits even more countries in Africa. The €60 million EIB support, in addition to the €34 million rolled out last year to support Cameroon, Niger and Togo’s memberships demonstrates Team Europe’s rapid response to enhance cooperation with African partners during challenging times. New EIB support for private sector investment in West Africa follows recent backing of large scale solar energy and fifth
years of engagement across Africa.” Noted, Ambroise Fayolle – European Investment Bank Vice President.
Coming to be a full member country will make it susceptible and inexpensive for investors to ascertain jobs, expand business activity and provide clean energy in all these countries. Someplace in Africa, membership of ATI has stimulated nations to lessen debt levels and, provide global investors and financiers large-scale that sovereign transactions and other investments are back-stopped by a highly rated and reputable insurance guarantee provider.
Absence of investment insurance in most African markets is holding back important investments, both in equity or debt, and encumbers cross border trade. In recent months, high economic challenges correlated to the COVID-19 pandemic, has provided cross-border shortage of trade insurance in Africa. ATI’s existence is therefore now, more than ever – a key component next to several countries proficiency to abide by attractive investment objectives.
As African countries’ begin to build by protection against the likely negative economic fall out from COVID-19, investment insurance capacity is glimpsed as a significant part of the financial backing that will be wanted to better insulate the economies of many African nations.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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