Release date: 2 October 2019
Promoter – Financial Intermediary
AFRICAN TRADE INSURANCE AGENCYLocation
Description
The project consists of the financing of the membership contribution of several African countries in the capital of African Trade Insurance (ATI). Such participation will enable each country, in the present case Togo, to benefit from the guarantee mechanism of ATI. The project supports the development of various industries, in particular the private sector, through a range of investment and trade insurance products.
Objectives
The project fosters private sector investments through the expansion of African Trade Insurance Agency (ATI) in Africa. In the specific case, the project will allow Togo to become a member state of ATI. Over the past years, many African countries launched programs aiming at boosting their economies. All these plans have in common the prominent role of the private sector and they all underline the importance of foreign direct investments (FDI) as a driving factor to support the economic growth. As a crucial part of such FDIs and as a central pillar to encourage investors' attractiveness, countries rely on investment insurances provided by private sector insurers or institutions such as the Multilateral Investment Guarantee Agency (MIGA). However, the resulting insurance capacity is insufficient, ultimately restricting private sector investments and limiting growth potential in many countries. In 2001, seven African countries created ATI as a tool to support private sector investments and to enhance the business environment in its member states by providing investment and trade guarantees. ATI has grown since then and today 14 African countries are amongst the various shareholders of ATI with more countries interested to follow. The project is also aligned with Togo's national development plan spanning from 2018 to 2022, which includes up to 65% of private sector and foreign investments in the economy for of the future projects in Togo. The operation will contribute to several Sustainable Development Goals (SDG), in particular to inclusive economic growth (SDG 8) and to poverty reduction (SDG 1).
Sector(s)
- Services - Financial and insurance activities
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
USD 12 million (EUR 11 million)
Total cost (Approximate amount)
USD 240 million (EUR 216 million)
Environmental aspects
Given the nature of the services sought, no relevant environmental impact to be considered once the Republic of Togo becomes a shareholder of ATI.
Procurement
The promoter will have to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.
Status
Signed - 16/12/2019
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).