Africa’s infrastructure guarantees platform plans to double its capital, CEO says

The African Trade and Investment Development Insurance (ATIDI) plans to double its capital to $2 billion over the next two years, its chief executive told Reuters, as African leaders ‌look to a new financing model for the hundreds of billions of dollars needed for infrastructure investment on the continent.

“Our ambition is to get to $2 billion … what limits us is capital,” Manuel Moses told Reuters, adding the process depended on securing new shareholders but would likely take roughly two years. “We want to do it as soon as possible.”

Talks are ongoing with France, other G7 nations and about 30 African nations who have not yet joined, Moses said.

“We have to convince these countries, these partners to speed up their processes,” he said.

Nairobi-based ATIDI was set up 25 years ago to de-risk investment in Africa through insurance and guarantees to help channel private capital into riskier projects.

It is owned ‌by 24 African states and institutional investors, including African financial firms and Germany’s KfW Development Bank, which joined in April.

The African Development Bank (AfDB), which is leading the continent’s new financing model, raised its stake in ATIDI to 14% earlier this year from 3%, injecting $125 million.

The AfDB’s president told Reuters in May that ATIDI’s increased firepower will enable it to increase its annual guarantee volumes to $10 billion.

Moses said doubling capital would allow it to increase annual guarantee volume to $20 billion.

ATIDI has so far provided guarantees for projects including a modern railway in Tanzania and Kenyan telecoms operator Safaricom’s expansion into neighbouring Ethiopia.

It has also enabled African countries to cut expensive debt through swaps and sustainability-linked facilities.