ATI expands Shareholding base with New Membership of NEXI Japan
- Japan’s Export Credit Agency, NEXI is the newest shareholder of ATI, with USD14.8 million capital injection.
- With aim of boosting Japanese investment and trade across Africa, the two organizations held a long-standing strategic partnership that resulted in the establishment of a Japanese Single Window “Japan desk” since 2019.
- Recent development projects supported include an Investment Risk Insurance cover provided by ATI to Japan’s Sumitomo Corporation on the largest telecommunication investment ever done by Japan on the African continent in Ethiopia, where NEXI provided reinsurance support to ATI for establishment of Safaricom Ethiopia.
Nairobi, 13 June 2023 – Japan’s Export Credit Agency, Nippon Export and Investment Insurance (NEXI) is the newest shareholder of the African Trade Insurance Agency (ATI) having joined the Pan-African Guarantee Institution, with a USD14.8 million capital injection. This equity investment reinforces the long-standing and ever-growing cooperation between Africa and Japan under the Tokyo International Conference on African Development (TICAD) auspices with ATI and NEXI promoting Japanese trade and Foreign Direct Investment (FDI) into Africa.
During the TICAD7 Summit hosted in Japan in 2019, the two organizations announced the establishment of a “Japan desk” in ATI’s Nairobi office to support African developmental and commercial projects so that Japanese companies can obtain easy access to reliable risk mitigation solutions provided by ATI. To date, the “Japan desk” has promoted support to both Japanese and African business with an active gross exposure valued at USD1.1 billion in the information & communication, Financial & Insurance activities, and construction sectors in Côte d’Ivoire, Egypt, Ethiopia and Nigeria.
NEXI’s shareholding in ATI, and strategic presence in Africa as an investor, provides reassurance to Japanese financial institutions and prospective investors seeking business opportunities on the continent. As Japan continues to expand its footprint in Africa, we are confident that this membership will greatly enhance both parties with additional capacity for ATI to underwrite strategic transactions and promote economic development across Africa.
The Japan desk initiative recently supported a strategic development project; a 10-year Foreign Direct Investment Risk Insurance cover provided by ATI to Japan’s Sumitomo Corporation on its investment in a new telecommunication company in Ethiopia – Safaricom Telecommunications Ethiopia Plc (STE), where NEXI provided reinsurance support to ATI. The project is one of the single largest Japanese Foreign Direct Investment (FDI) in the continent and Ethiopia specifically.
In recent years, ATI has provided insurance policies to protect some of Japan’s private sector against the risk of non-payment on transactions valued at USD4.9 billion. Some of this financing has helped African countries to reprofile short-term and unaffordable foreign and local debts, into longer tenures and more affordable debt servicing for African Governments. With the completion of membership, ATI expects to support many more Japanese manufacturers, traders, exporters and financial institutions seeking for business opportunities and market access across Africa in the coming years.
Quote from Atsuo Kuroda. Chairman and CEO, NEXI
“I am truly honored to be able to announce that NEXI is now officially a member of ATI. We are extremely grateful of all the guidance and support from ATI during the entire process. As a member of ATI from this point on, NEXI will continue to work closely with ATI to encourage more Japanese companies to make international trade and investments in Africa.”
Quote from Manuel Moses, Chief Executive Officer, ATI
“I sincerely congratulate NEXI for becoming the newest institutional shareholder of ATI. In recent years, ATI and NEXI have held a strong working relationship towards promoting trade and investment between Japan and Africa under the auspices of TICAD and I am happy that our strategic collaboration has culminated into NEXI’s equity investment in ATI as shareholder. We are confident that as Japan expands its FDIs and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent, but will also attract more Japanese investors seeking for business opportunities in Africa’s population of over 1.2 billion people in the single market, under the African Continental Free Trade Area (AfCFTA).”
Press Release 2023/0613/Nairobi
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Sheila Ongas
Communications Officer
African Trade Insurance Agency
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About the African Trade Insurance Agency
ATI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATI has supported USD78 billion worth of investments and trade into Africa. For over a decade, ATI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATI obtained an A3/Stable rating from Moody’s, which has now been revised to A3/Positive.
