- The pair have entered into their second, three-year agreement to scale and replicate successful Foreign Direct Investment partnership models.
- Agreement will set up mechanism to measure progress and results as well as joint marketing initiatives to strengthen cooperation and explore new investment opportunities.
- Both parties will carry out joint marketing efforts, training, and seminars to strengthen cooperation and explore new investment opportunities in Africa.
MIGA, the Multilateral Investment Guarantee Agency, has teamed up with African Trade and Investment Development Insurance (ATIDI), an insurance services provider, to accelerate the flow of foreign direct investments across Africa. As a key branch of the World Bank Group, MIGA specializes in offering guarantees, and this partnership aims to boost investor confidence throughout the continent.
The pair’s three-year partnership will be the second agreement between them aimed at maximizing development impact across economies in Africa, a continent that is grappling with a myriad of challenges including poverty, food security and joblessness among the youth.
The two organizations said that they will collaborate by leveraging ATIDI’s expertise in insurance and guarantee products across the African continent and MIGA’s range of guarantee offeringss and guarantee expertise through the World Bank Group guarantee platform.
How MIGA and ATIDI alliance will support FDI flows
“Our partnership with ATIDI will enable us to support countries in Africa in scaling and replicating development projects, thereby accelerating prosperity. This agreement will play a significant role in helping the continent attract foreign investment for key development projects,” noted Hiroshi Matano, MIGA Executive Vice President.
Their partnership will also seek to improve efficiency in joint project due diligence, maximising cost savings and eliminating duplication.
“Enabling more investment to finance transformational projects is vital to Africa’s sustained development. MIGA and ATIDI’s de-risking solutions are essential to achieve this crucial agenda. Beyond signing of this agreement, we look forward to a dynamic collaboration with MIGA, to leverage our institutions’ respective assets for the benefit of our continent,” explained Manuel Moses, CEO, ATIDI.
The agreement framework emphasizes mutual reliance, accountability, and comparability. Each party will regularly share operating standards and procedures to help identify comparable outcomes to further both organizations’ development mandates.
Both organizations have agreed to set up mechanisms to measure progress and results, including reports on joint projects, new products, capital mobilized, and reduced project processing times. Moreover, both parties will carry out joint marketing efforts, training, and seminars to strengthen cooperation and explore new investment opportunities in Africa.
Organizations aim at creating a world free of poverty
The strategic agreement framework underscores the commitment of MIGA and ATIDI to create a world free of poverty on a livable planet. The two organizations aim to mitigate investment risks by pooling resources, thereby accelerating sustainable economic growth in Africa.
Founded in 2001 by a coalition of countries in Africa, insurer ATIDI aims to cover trade and investment risks of companies doing business on the continent. The company primarily underwrites political risk cover, credit insurance and surety insurance services.
Over the years, the Pan-African insurance has supported $85 billion worth of investments and cross border trade into Africa. For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been upgraded to A2/Positive.
Besides its headquarters in Nairobi, Kenya ATIDI currently has offices in Benin, Côte d’Ivoire, Tanzania, Uganda and Zambia.
Initiated in 2024, the World Bank Group Guarantees consolidates all guarantee products and experts from across the multilateral lender’s institutions at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs.
The platform helps to streamline processes, eliminate redundancies, while also offering greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.
Read also: AIM Global Foundation pushes for stronger Gulf-Africa trade partnerships
