Development Finance Institutions – African Trade Insurance

Energy Solutions

Development Finance Institutions

Risk Protection for Development Finance Institutions
Renewable energy projects enable African countries to leapfrog over traditional systems and build clean economies of the future. With African Trade Insurance Agency’s protection, Development Finance Institutions (DFIs) can confidently support the development of African energy projects in ATI member states.

As a multilateral insurer owned by African member countries, ATI’s interests are aligned to yours, and we have preferred creditor status. We are your eyes and ears on the ground throughout the life of a project. We can:

  • Enhance your offering or product with additional risk mitigation
  • Help to balance your risk portfolio
  • Help you to shed the risks
  • Enable you to continue to pursue opportunities in markets where you have reached maximum capacity

ATI insures direct loans to the utilities, as well as loans to Independent Power Producers (IPPs), Energy Performance Certificate (EPC) contractors, and suppliers. Our cover makes your facility investment grade and provides capital relief.

Our policy wording is generally accepted to be Basel compliant, and we work with other insurance partners that are investment-grade. We have a flexible approach and can help you with the onboarding process with your credit team.

We work closely with development finance institutions to mitigate the following risks:

Public Utility Risks
The power off-taker and the manager of the transmission lines are key partners in any energy project. ATI’s Breach of Contract Insurance protects you against failure of the utility to meet its contractual obligations, such as non-payment or unilateral changes in the Power Purchase Agreement (PPA). By removing one of the key perceived risks, we help to make the project bankable.

Meanwhile, the RLSF (liquidity risk insurance) can ensure that the debt will be serviced even if the off-taker does not pay.

Learn more about Breach of Contract Insurance  and RLSF

Political Risks
Unexpected issues can arise in emerging African markets, and it’s worth being prepared. ATI’s Political Risk Insurance mitigates against events such as expropriation of assets, currency inconvertibility, trade embargoes and more.

Learn more about our Political Risk Insurance

Non-Payment Risks
Lenders to sustainable energy projects in ATI member countries can insure against non-payment or delayed payment, including cross-border transactions. Banks can increase their rights by becoming loss payee or co-insurer when they finance suppliers to energy projects. ATI is on the ground and can add a local perspective to your credit assessment.

Learn more about our Trade Credit Insurance

Political Violence, Terrorism, and Sabotage Risks
The possibility of politically motivated violence, terrorism, or sabotage shouldn’t prevent you from lending to African energy projects. These risks are infrequent, but have a high impact. ATI’s Political Violence, Terrorism, and Sabotage Insurance protects your client against damage to physical assets and loss of income due to business interruption and thus enables them to continue to service their debt.

Learn more about our Political Violence, Terrorism, and Sabotage Insurance

Enable the growth of renewable energy in Africa – talk to us about how to finance Africa’s renewable energy projects with confidence.

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