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ATI Attracts $82m In Trade, Investments To Tanzania

posted Jun 2, 2014, 11:58 AM by Nnamdi Eguh

VENTURES AFRICA – The African Trade Insurance Agency (ATI) in the year ended December 2013 helped Tanzania secure trade and investments worth $82 million (Tsh132 billion), Chairman ATI Board of Directors, Israel Kamuzora said last week.

The multilateral developmental institution which operates across various African markets said it particularly supported the energy, financial services, ICT/Telecommunications and transport sectors in the country in the year 2013.

While speaking during the presentation of the firm’s 2013 financial result at the country’s capital, ATI’s Chief Executive Officer, George Otieno said ATI posted $1.5 million (Tsh 2.4bn) profit in the year in view, a 144 percent increase from $600m it made in the year 2012.

According to him, ATI is engaged in a $62 million (Tsh100 billion) lending facility that propose to help state power utility, Tanzania Electric Supply Company (TANESCO) expand electricity coverage. It also supported a Tanzanian bank with $1.1 million (Tsh1.7 billion) loan coverage to help a local transport company buy seven additional overhauled trucks and new tankers.

Other projects it involved in included $13.1 million reinsurance support to companies on political violence, $ 1.5 million cover on a contract financing facility for a local subsidiary and another $ 1.5 million cover on the import of telecommunications equipment from Japan.

“ATI was created to fill a market gap in trade and investment risk mitigation in Africa,” said Kamuzora, who noted that most international lenders believe that the continent was unsafe for lending due to trade credit and political risks.

The agency helps member countries to attract investments and local companies to do business safely across borders. It also covers key business risks, including the risk of non-payment by governments and private companies.

Chairman of the ATI Board of Directors, Mr Israel Kamuzora said the ATI was created to fill a market gap in trade and investment risk mitigation in Africa and to correct the negative perception of most international lenders who see Africa as an unsafe place for lending due to political and trade credit risks.

Since inception, ATI has supported $13 billion in Trade and Investments across Africa in sectors such as agribusiness, energy, infrastructure manufacturing and telecommunications.