Senegal joins with a subscribed capital contribution of EUR15 million, following financial support from the European Investment Bank
NAIROBI, Kenya: The Republic of Senegal joins the African Trade Insurance Agency (ATI) (www.ATI-aca.org) as its 20th member state on its 20th Anniversary #20@20.
Senegal joins with a subscribed capital contribution of EUR15 million, following financial support from the European Investment Bank (EIB).
With the addition of Senegal’s contribution, ATI’s total equity stands at approximately US$473.8 million, a 15% increase since December 2020.
ATI is working with the Ministry of the Economy, Planning and International Cooperation, the Ministry of Finance and Budget and key partners of the Private Sector of Senegal to identify key support areas towards supporting Senegal’s National Development Strategy of an Emerging Senegal (PES) by 2035.
In the short term, ATI expects to support projects valued at over US$ 1 billion in the Financial, Energy and Infrastructure sectors.
As the African Trade Insurance Agency (ATI) celebrates two decades of designing innovative financial solutions for Africa’s trade and investments, the organisation is pleased to welcome the Republic of Senegal as its 20th member state.
Following financial support from the European Investment Bank (EIB), Senegal has joined ATI with a subscribed capital contribution of EUR 15 million.
As a result, ATI’s total equity now stands at approximately US$473.8 million, representing a 15% increase since December 2020.
The increase is attributed to new membership from Cameroon and Senegal, as well as continued profitability and reinvestments from existing shareholders in 2021.
ATI’s insurance and guarantee products will promote inward investment and affordable financing for the Government of Senegal.
In particular, ATI can provide the country with a viable option to attract the much needed investment to implement its Plan of an Emerging Senegal (PES) by 2035.
ATI’s rating (S&P – A/Stable and Moody’s A3/Stable) will benefit lenders looking to do more business in the country with a strong risk participant.
This should increase the ability and capacity of lenders and investors and significantly reduce Senegal’s cost of borrowing from international lenders, potentially reducing the country’s debt to GDP ratio.
ATI mobilizes private sector capacity in the form of reinsurance to transactions in member countries thereby delivering significantly on its mandate to support trade and investment on the continent.
Senegal’s membership in ATI has come at an opportune time as it is aligned with the country’s new development strategy. The PES forms the reference framework for the country’s economic and social policy over the mid and long-term, which relies on a prominent role for the private sector seeking to attract more Foreign Direct Investment for the development of Senegal.
In the short term, ATI expects to support viable projects valued at over US$1 billion in the Financial, Energy and Infrastructure sectors in Senegal.
ATI’s membership drive is partly supported by the EIB, which to date has provided a combined EUR 64.11 million in concessional lending for the membership subscription of Benin, Cameroon, Niger, Senegal and Togo.
The EIB is also supporting Chad and Burkina Faso, both expected to complete their ATI membership requirements and join in the coming months.
Manuel Moses, CEO of ATI said, “We are proud to welcome the Government of Senegal as our 20th Member State on our 20th Anniversary! We commend the Government’s efforts over the years towards finalising their membership requirements.
“ATI is committed to supporting Senegal, and Africa at large, in achieving its sustainable development goals, as we are the de-facto business risk mitigation organisation that facilitates investment and propels intra Africa trade in support of African Continental Free Trade Area (AfCFTA).”
H.E. Amadou Hott, Minister of the Economy, Planning and International Cooperation – Senegal said, “Senegal is a credible and important player in the financial market and this membership will allow us to diversify the financing instruments available to the Republic of Senegal.
“Moreover, membership to ATI will not only provide access to new investors and new products with local currency financing and with longer maturities but will also play a key role in financing the recovery of the economy, with strong private sector participation.”