To focus on war, terrorism, nationalization
The insurance firm has introduced a new product that covers trade credit and political risks that otherwise deter foreign investors from the country and continent as a whole with war, terrorism and nationalisation stated as main deterrents of foreign investors.
Speaking to journalists yesterday in Dar es Salaam, the Insurance Commissioner Israel Kamuzola who is also chairperson of the ATI board backed the insurance package saying it will increase security of trade and investments for foreigners and that way increase investment.
“Nationalisation of private trade and investments, threats of terrorism and wars are political risks which are the motivation behind introduction of the insurance that will cover any risk caused by political decisions,” he said.
Kamuzola went on to note that in the wake of the ongoing mineral discoveries as well as that of other natural resources there is increasingly greater need for what he described as “innovative insurance packages.”
ATI Chief Executive Officer, George Otieno said that the trade credit risk insurance– in a way – enables financial institutions and banks to continue supporting investments after having being assured that any risk that may occur to a loan beneficiary will be covered.
ATI Resident Underwriter (representative) to Tanzania, Tusekile Kibonde, said the firm has been instrumental in unlocking the flow of financing to private companies and for state-run agencies in some key sectors including the energy sector in which only last year, ATI helped companies and government agencies access in excess of 105bn/-.
In that respect, she also pointed out that ATI covered a loan from Tanzanian bank worthy 1.7bn/- that helped a local transport company purchase seven additional reconditioned trucks and new tankers but without the help of ATI, the transporter would not have gotten the loan and the investment would not have taken place.
ATI has its footprints in Benin, Burundi, Democratic Republic of Congo, Kenya, Madagascar, Malawi, Rwanda, Uganda and Zambia.
Among these countries, Kenya is said to have made the most of the firm’s the most from this insurance package and that way attracted many investors despite political challenges that it has been facing.
Notably, ATI is working closely with the Tanzanian Central Bank to ensure that capital requirements for banks participating in ATI-backed projects are protected and help increase financial access for the Small and Medium Entrepreneurs in the country.
SOURCE: THE GUARDIAN
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