Projects - African Trade Insurance Agency

ATI is helping grow Africa sector by sector and project by project with lasting impact.

ATI supports the goals of its member countries by providing insurance support for their priority sectors. From a USD110 million pre-export facility for the extraction of copper cathodes in the Democratic Republic of Congo to a USD255 million syndicated loan to secure outstanding contract obligations to Independent Power Producers in Tanzania, ATI is becoming a market leader in providing solutions that show real impact in our member countries.

Below is a sample of our projects:


Project:Supply of assorted seeds for a farm input support programme

Project Value: USD1.3 million

Risk Country: Zambia

Development Impact: The Farm Input Support Programme is an on-going project run by the Government of the Republic of Zambia. It aims to facilitate the acquisition and distribution of agricultural inputs such as fertilizer and seeds to smallholder farms, who are considered to be economically vulnerable. This intervention helps to alleviate poverty through the provision of subsidized farm inputs.

Project:Supply of broken rice

Project Value: USD8.1 million

Risk Country: Côte d’Ivoire

Development Impact: An international agri-business firm supplied rice to the country, which is a staple food for a majority of the population in Côte d’Ivoire

Project:Housing

An African-based housing construction company required insurance to cover an investment from a European financial institution. This project supported by the Ministry of Urban Development and Housing, increases the housing capacity in Kinshasa with a three block housing complex that will service dozens of families.

Maximum Sum Insured: USD 1.8 million

Project:Construction of structural steel, buildings, reinforced concrete, associated earthworks and civil steel

ATI insured a private civil and building construction company against non-payment by one of the main sugar companies in Tanzania.  The project aims at expanding the sugar cane production in the country, which is expected to grow by 3.39% in 2013 and create new jobs for the locals.

Maximum Sum Insured: USD 1.5 million

Project:Non-payment cover on fuel supply

Project Value: USD4 million

Risk Country: Kenya

Development Impact: ATI supported one of Kenya’s leading fuel distributors, which supplied to an extensive retail network within the country.

Project:Supply of fuel to the Government

Project Value: USD50 million

Risk Country: South Sudan

Development Impact: Oil revenues constitute more than 98% of the government’s budget – therefore, ATI’s support on this transaction has a significant impact on the economy.

Project:Acquisition of aircraft

Project Value: USD159 million

Risk Country: Ethiopia

Development Impact: ATI backed a loan from the African Development Bank to fund Ethiopian Airlines’ fleet expansion with the purchase of an Airbus A350-900 jet. The airline’s aggressive expansion strategy includes doubling its fleet and increasing revenue to USD 10 billion in the next decade.

Project:Supply and Installation of Telecommunication Equipment

This transaction falls under a Supply Agreement between two global companies, one a manufacturer of telecommunications equipment while the other provides mobile telephone services. ATI is insuring receivables from the supply and installation of network connectivity equipment and related accessories in several African countries.

The Zambian telecommunications market remains competitive with an independently regulated telecoms sector, three competing mobile networks and a national operator, which the government is privatising. The Zambian market, with a below average penetration of mobile telephony of 29% is one of several growth markets within the East and Southern Africa region.

Maximum Sum Insured: USD 3.7 million

Project:Supply and Installation of Telecommunication Equipment

This transaction falls under a Supply Agreement between two global companies, one a manufacturer of telecommunications equipment while the other provides mobile telephone services. ATI is insuring receivables from the supply and installation of network connectivity equipment and related accessories in several African countries.
With 10 million mobile phone subscribers out of a population of 30 million, the Ugandan market is one of several African countries poised to take off.

Maximum Sum Insured: USD 730,000

Project:Road Reconstruction

This project, the reconstruction of a road connecting rural regions to Kenya’s capital Nairobi, provides two noteworthy benefits: First, it resonates with the state’s objective of supporting domestic Small and Medium sized companies through the award of government contracts. Second, the road will give farmers easy and speedy access to key markets within the city by facilitating movement of produce from the farms. With recent studies indicating that over 70% of African farmers’ losses occur post-harvest, a reliable road system goes a long way to enhance the productivity of the agricultural sector on the continent. ATI supported the contractor by guaranteeing compensation if the government agency failed to pay for services rendered.

Maximum Sum Insured: USD 11 million

Project:Supply of road construction equipment

An international trading company based in China won a bid to supply road construction equipment to the government agency responsible for road construction and maintenance. The company’s bank requested them to obtain insurance to mitigate against non-payment risks while sourcing and purchasing the equipment. The project supports Kenya’s vibrant infrastructure strategy that will help reduce the cost for companies to move goods within the country.  This commitment by the Kenyan government is supported by a 20% budget increase on infrastructure development with $1 billion to be spent on improving road networks alone in 2011.

Maximum Sum Insured: USD 363,000

Project:Various

Project Value: USD53 million
Risk Country: Kenya
Development Impact: In 2015, Kenya launched a 10-year industrialization blueprint dubbed, ‘Kenya’s Industrial Transformation Programme. This plan is meant to increase manufacturing sector jobs to 435,000 and add USD2 billion to the GDP. In three years, ATI has already contributed 3% to this noble objective and we aim to increase it to 10% by 2025.

Project:Various

Project Value: USD10.5 million

Risk Country: Zambia & Malawi

Development Impact: With ATI’s support, Small and Medium scale enterprises in both countries were able to do business on credit facilities.

Project:Mining

This project shows how even a small venture can have direct and positive impacts on a country’s socio-economic welfare. The project supports FDI flows into the DRC and in doing so paves the way for additional investments. Armed with a three-year ATI Political Risk Insurance policy covering the full project investment, a UK-based company was comfortable investing in a precious minerals trading business in the country.

Maximum Sum Insured: USD 125,000

Project:Supply of fuel to a copper mine

A South African based fuel importer faced a challenging situation. Rising fuel prices combined with its client’s need to ramp up production meant they required greater capacity to fill the order. They sought help from a premier African bank, which set up a financing facility. ATI then stepped in with a $4 million policy that protects the bank against non-payment by the fuel importer.

Maximum Sum Insured: USD 7 million

Project:Installation of medical equipment for a Government hospital

Project Value: USD3 million

Risk Country: Uganda

Development Impact:  An international company was contracted to supply endoscopy and urology medical equipment to a Government hospital following the breakdown of the diagnostic machine at the Uganda Cancer Institute. This helps to ease the current crisis in the diagnosis and treatment of cancer patients who have extensive wait times and, as a result, often travel to neighbouring countries to get assistance

Project:Purchase of energy equipment

Project Value: USD 0.6 million

Risk Country: Rwanda

Development Impact: A German trading company exported specialized equipment to the Government. The equipment will then be distributed to companies and government agencies, helping increase the government’s resources and its ability to fulfil its mandate of improving the lives of its citizens.

Project:Freight Forwarding by Air and Sea

The services sector in Kenya continues to be one of the key contributors to economic growth impacting on nearly every sector of the economy. Under this transaction.

ATI insured a freight forwarder who sought protection against non-payment by their overseas and local customers. The company services a large number of clients in the floriculture sector – a vital sector that contributes 28% of Kenya’s total exports to Europe.

Maximum Sum Insured: USD 5 million

Project:Term loan facility to finance purchase of new aircraft in support of air transportation

This project supports Rwanda’s tourism boom which brought in $200 million to the local economy in 2010. To better service the estimated 666,000 tourists that visited last year the government is revamping its ICT infrastructure, regional railway and energy grid. Shoring up its regional carrier is also seen as a core part of a plan to compete with its neighbours for a share of the lucrative tourism market and manufacturing business. To support the airline’s expansion, ATI insured PTA Bank’s loan to the airline against government payment default. In the process, ATI fulfils a core mandate to support efforts that remove barriers to trade in the region – key among these barriers is lack of efficient transportation.

Maximum Sum Insured: USD 60 million

Project:Hotel construction

Kampala, Uganda, like many other major African cities experienced a surge in tourism in the last decade. Their success led to a shortage of quality accommodation and meeting facilities.

To help Uganda’s tourism industry, ATI provided $25 million in Foreign Direct Investment Insurance protection to a South African based investor of an international hotel chain being built in Kampala.

Maximum Sum Insured: USD 25 million

Project:Sale of copper

Project Value: USD50 million
Risk Country: Democratic Republic of Congo
Development Impact: An international consortium took ATI’s cover enabling it to more easily sell its copper with additional liquidity via structured financing.

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