PRESIDENT Muhammadu Buhari on Monday signed the instrument of accession of the agreement for the establishment of the African Trade Insurance Agency.
Garba Shehu, Senior Special Assistant to the President (Media & Publicity) in a statement on Monday disclosed that a memorandum from the Attorney General and Minister of Justice, Abubakar Malami, showed that the request for the President’s signature on the agreement was sequel to the directive of the Federal Executive Council, that the instrument be prepared and forwarded for execution.
African Trade Insurance Agency popularly known as ATI is a pan-African financial institution providing credit and political risk Insurance Products to support African investments, businesses, companies and lenders.
With deep roots in Africa, it is best positioned to understand and assess the risks and to help mitigate them.
ATI, was established in 2001 by seven COMESA countries and with the technical and financial backing of the World Bank to provide insurance against political and commercial risks in order to attract foreign direct investments into the region.
The Agreement and the Agency are registered with the Secretariat of the United Nations in accordance with Charter of the United Nations and is in cognizant of the fact that lack of adequate political, non-commercial and commercial risk insurance is a significant impediment to the availability of finance for investments in Africa and the expansion of African foreign trade and intra-Africa trade.
The Agency when executed will acknowledge previous multilateral efforts made by African States towards regional economic integration through co-operation in trade liberalization and development so as to attain sustainable growth, promote economic activity and create an enabling environment for foreign trade, as well as cross-border and domestic investments.
Recalling the economic objectives and aims of the African Union, there are several African Treaties on regional economic integration, including the Treaty Establishing the Common Market for Eastern and Southern Africa, the Treaty Establishing the Southern African Development Community and the Treaty Establishing the Economic Community of West African States.
The ratification was adopted at Grand Bay in the Republic of Mauritius on the Eighteenth Day of May, 2000. The object and purpose of the Agency is to provide, facilitate, encourage and otherwise develop the provision of, or the support for, insurance, including coinsurance and reinsurance, guarantees, and other financial instruments and services, for purposes of trade, investment and other productive activities in African States in supplement to those that may be offered by the public or private sector, or in cooperation with the public or private sector.