Nairobi/ Abu Dhabi, 9 March 2021 – Etihad Export Credit Insurance Company PJSC (ECI) and the African Trade Insurance Agency (ATI) have today signed a Memorandum of Understanding (MoU) on mutual cooperation and communication. The MoU aims to explore, strengthen and enhance trade and economic cooperation between Africa and the United Arab Emirates (UAE).
Developed economies have for years provided support to their investors and traders expanding into high-risk overseas markets through their government-funded Export Credit Agencies (ECAs). ECAs give insurance and may also provide loans to back the cross-border transactions of their domestic lenders and companies, driving exports and stimulating international trade.
The MoU will reinforce ECI’s support to its exporters and investors doing business in Africa. Through the MoU, ECI will access:
The virtual signing ceremony was done in the presence of ATI’s Management team, led by the Chief Executive Officer – Manuel Moses and ECI’s Management team was represented its Chief Executive Officer, Mr. Massimo Falcioni.
Underscoring the importance of the strategic alliance, Mr. Falcioni said, “As we celebrate the rich and illustrious trade relations of the UAE and the African region over the years, we at ECI are pleased to take this partnership further with ATI. This collaboration will give our exporters the confidence to access the African region’s diverse markets and resources with state-backed assurances and safeguards against commercial and political uncertainties.”
“We welcome this opportunity to strengthen our commitment with ECI in exploring mutual opportunities for insurance, reinsurance, co-insurance and skill development and to assist and support insureds from ATI and ECI. The conclusion of this agreement also comes at an opportune moment as ATI has an excellent mandate that supports trade and private sector growth in the region, particularly in the wake of the coronavirus that has affected global economies,” noted Manuel Moses.
Increasingly, International ECAs have turned to ATI to neutralize the risks they may encounter in African markets. To date, ATI has supported projects by international ECAs valued at US$1 billion. ATI is based in Africa and therefore it has on-the-ground expertise that the ECAs may not have. As a result international markets have grown to value and trust ATI’s robust risk ratings.
About Etihad Credit Insurance (ECI)
ECI supports UAE businesses through trade risk mitigation tools that eliminate the uncertainty in a market that mostly demands for an open credit account transaction, which is a risky payment option. In the unfortunate occurrence of a non-payment – whether the customer is unwilling or unable to pay – insurance will take care of the loss and the company is ensured to receive the payment.