Project: SME Development

Small and medium sized enterprises (SMEs) drive economic growth in most countries providing upwards of one-third or more of all jobs. In Malawi, like in many other countries, SMEs are an important part of the economy. They employ more workers than large enterprises, use mainly local resources, cater to the needs of people living at or below the poverty line, and they are more adaptable to client demand.

To facilitate SME development in Malawi, a leading South African franchisor of tool rentals, wanted to meet expanding demand outside of its borders by opening an outlet in Malawi. To finance the project the company solicited funds from IDC, South Africa’s state-owned national development finance institution. ATI supported the project by providing coverage to protect IDC’s loan against political risk.

IDC helps companies in some 34 African countries access financing in sectors such as agro-processing, infrastructure, transport and construction. The project helped strengthen the synergies between ATI and the Industrial Development Corporation of South Africa, which are both committed to strengthening SMEs in Africa.

Maximum Sum Insured: $120,000