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AfDB, Japan Approve USD 1,000,000 for African Trade Insurance Agency
Tunis, 22 October 2009—The African Development Bank (AfDB) and the Government of Japan have approved a grant of USD 1,000,000 to the African Trade Insurance Agency (ATI) from the Fund for African Private Sector Assistance (FAPA). ATI is a multilateral financial institution, created in 2001, providing export credit insurance, political risk insurance, investment insurance and other financial products to help reduce the business risks and costs of doing business in Africa.
The technical assistance contribution from FAPA, which makes up 31% of the overall TA package for ATI, will be used to build institutional capacities and technical skills of ATI staff. Specifically, FAPA funds will pay to strengthen corporate governance, implement an appropriate underwriting system, strengthen the ICT infrastructure, enhance human resource management skills, improve ATI’s ability to meet customer needs in member states, conduct a trade market survey and develop a private placement memorandum. Upon the satisfactory achievement of the key performance indicators, the African Development Bank Group will consider providing additional financing to assist ATI to increase its capital base and expand its activities across the continent.
The Fund for African Private Sector Assistance (FAPA) is a component of the Enhanced Private Sector Assistance Initiative (EPSA), which is a billion-dollar joint initiative of Japan and the AfDB to promote private sector development in Africa. The FAPA trust fund provides untied grants for studies, technical assistance and capacity building for private sector projects and African institutions such as ATI. Since FAPA's creation in 2006, Japan has contributed USD 30 million while the AfDB has contributed USD 10 million. The award of the present grant brings the total of FAPA commitments to about USD 23 million covering 28 projects across the African continent.