Turning threat into alternative for Africa’s future

African Commerce & Funding Growth Insurance coverage (ATIDI) marked a major milestone in its institutional journey at its twenty fifth annual basic assembly (AGM), held from 18 to 21 June 2025 in Luanda, Angola. Themed “Turning Threat into Alternative, Securing a Sustainable Future”, the gathering introduced collectively high-level representatives from 24 African member states, in addition to 13 institutional shareholders, improvement finance establishments and strategic companions.

Hosted by Angola, the AGM served as each a mirrored image on the previous and a recalibration for the long run, highlighting ATIDI’s mission to reshape how threat is managed and perceived throughout the continent. The occasion introduced into sharp focus the urgent must reframe threat notion on the continent and to safe sustainable financing for Africa’s future.

Since its institution in 2000, ATIDI has emerged as a cornerstone of African improvement finance, has offered crucial political and business threat insurance coverage to unlock commerce and funding. Angola’s resolution to host the AGM – shortly after becoming a member of ATIDI in 2023.

ATIDI has already supported infrastructure improvement price over $2bn in Angola, targeted on water provide, power and fuel tasks that instantly enhance livelihoods and create jobs. Talking on the occasion, ATIDI chairman Kelly Mua Kingsly mentioned the establishment’s creation 25 years in the past was born of a perception in pan-African cooperation. “Within the 12 months 2000, ATIDI was born from a daring and visionary thought: that, by working collectively, African nations may overcome the boundaries of threat that had lengthy deterred commerce and funding. It was a perception in regional solidarity, shared prosperity, and the facility of partnership,” he mentioned.

ATIDI has supported greater than $88bn in commerce and funding flows. With its capital base rising to $791.5m by the top of 2024 – a 13% enhance – ATIDI goals to cross the $1bn mark inside three years. “We’re extra than simply an insurer,” mentioned Kingsly. “We’re a trusted accomplice in Africa’s improvement journey, a catalyst that connects notion with potential, and threat with alternative.”

‘Daring, knowledgeable and strategic funding’

Chief government officer Manuel Moses echoed the sentiment in his opening remarks, noting that ATIDI’s core mission is to show African threat into alternative. “Our impression is grounded in a dedication to driving resilient, inclusive and forward-looking development throughout the continent,” he mentioned. “Africa’s future won’t be constructed via threat aversion, however via daring, knowledgeable and strategic funding with threat.”

Whereas ATIDI’s 2024 efficiency demonstrated resilience, it additionally mirrored the challenges of the broader financial setting. Insurance coverage income rose to $158.9m, and funding earnings surged by 45% to $29.8m. Nevertheless, outcomes from insurance coverage providers dropped by 36% to $34.7m, and revenue fell by 14% to $59.5m because of greater claims. However, Moses affirmed that standing by purchasers in tough instances was a part of ATIDI’s mandate. “Regardless of these pressures, we strengthened our basis,” he mentioned.

Most well-liked creditor standing (PCS) emerged as a key theme on the AGM, with quite a few audio system affirming its position in enhancing Africa’s threat profile. PCS ensures that ATIDI’s claims are prioritised within the occasion of a cost default, reassuring international reinsurers and traders. Angola’s minister of finance, Vera Daves De Sousa, described PCS as “a novel power” that reinforces ATIDI’s operational effectivity and investor confidence. She added that threat shouldn’t be shunned however “understood, shared and managed correctly,” with establishments like ATIDI taking part in a central position.

Moses underscored the significance of PCS to ATIDI’s derisking mannequin. “PCS is essential to securing reinsurance capability from international markets, with greater than 85% of our gross publicity reinsured,” he defined. It additionally protects ATIDI’s investment-grade credit score rankings, enabling it to entry capital markets competitively. “It isn’t only a authorized precept; it’s basic to our potential to ship on our mandate,” he mentioned.

By way of product innovation, ATIDI is increasing its attain via initiatives aligned with environmental, social and governance (ESG) targets. Its Regional Liquidity Assist Facility (RLSF) is backing renewable power tasks, having mobilised over $323m and supported 9 tasks producing almost 182 MW of unpolluted power throughout 4 nations.

One other key initiative is the Portfolio Threat-Sharing Association (PoRSA) programme for small and medium enterprises (SMEs), which promotes inclusive development by working with native monetary establishments to assist SMEs – particularly these led by girls and working in agriculture or cross-border commerce. ATIDI supplies credit score threat insurance coverage to lenders, thereby encouraging them to supply financing to under-served however essential sectors of the economic system.

ATIDI can also be advancing regional integration via the Regional Customs Transit Assure Scheme (RCTG). In partnership with Africa-Re, Afreximbank, the Frequent Marketplace for Japanese and Southern Africa (COMESA) and its reinsurer ZEP-RE, the scheme reduces boundaries to intra-African commerce by eliminating the necessity for separate transit ensures in every nation. It streamlines commerce logistics and aligns with the African Continental Free Commerce Space (AfCFTA) agenda.

In recognition of its rising position, ATIDI was named Growth Finance Establishment of the 12 months on the 2025 African Banker Awards in Abidjan. “This recognition is not only a trophy,” Moses mentioned. “It’s a tribute to each shareholder, accomplice and colleague who shares in our journey and impression.”

All through the AGM, roundtable classes featured main voices from finance, coverage and enterprise, all calling for a paradigm shift in how African threat is priced and managed.

Grappling with inexpensive financing

Within the first roundtable – “Managing African Threat and Capital Mobilisation” – audio system grappled with the continent’s enduring challenges in attracting inexpensive financing. Gabrielle Reid of Pangea-Threat mentioned that whereas international development forecasts had been downgraded, Africa remained resilient, with projected development second solely to Asia. Nevertheless, she warned that shifting US commerce insurance policies had been prompting a rethink of Africa’s international partnerships.

Reid famous that intra-African commerce reached $192bn in 2024, up 7.2% on the earlier 12 months, and is ready to rise additional with AfCFTA’s assist. “These dangers current a possibility for African nations to chart a brand new path,” she mentioned, highlighting diversification in direction of China, India, Turkey and the UAE.

Samira Mensah of S&P International careworn that low sovereign credit score rankings stem from structural weaknesses, not simply notion. “African sovereigns are significantly delicate to shocks due to their financial buildings and the shortage of fiscal and exterior buffers,” she mentioned. She known as for robust macroeconomic insurance policies, clear information and credible establishments to enhance rankings and investor belief.

Lazard’s Schwan Badirou Gafari added that Africa’s value of capital usually doesn’t replicate true threat. Solely two African nations maintain investment-grade rankings. “The notion of threat is greater than the basics warrant,” he mentioned. He urged African nations to utilise instruments like non-public placements and ESG-linked financing to handle prices extra successfully.

Rand Service provider Financial institution’s Takunda Pongweni addressed how sovereign threat impacts corporates. He cited Dangote, Safaricom and Normal Financial institution as examples of companies deprived by their nationwide credit score rankings. “We’re custodians of public belief,” he mentioned of the banking sector’s conservative strategy. To enhance entry to capital, his financial institution had constructed deep relationships with funding hubs within the US, Dubai and London.

ATIDI’s personal senior underwriter, Annabelle Buzingo, highlighted how the establishment is mitigating threat and reducing prices via credit score enhancements. She pointed to ATIDI’s position within the $910m Bita water venture in Angola, assured in partnership with the World Financial institution, for instance of efficient derisking. “That is how ATIDI helps its member nations obtain improvement outcomes,” she mentioned.

Price of capital

The second roundtable targeted on “Decreasing the Price of Capital via Innovation.” Patrick Olomo of the African Union (AU) Fee warned that regardless of ongoing reform efforts, the price of capital stays unsustainably excessive. He cited an annual lack of $587bn from poor threat notion, corruption, illicit monetary flows and revenue shifting. He known as for AU-led international advocacy to tailor monetary devices to Africa’s realities and praised the AU’s Alliance of African Multilateral Monetary Establishments (AAMFI) as a unifying drive.

Claudia Lopes of Crown Brokers Financial institution identified that blended finance buildings had been a useful resolution for enhancing pricing and enabling extra collaboration amongst banks, DFIs and multilateral companions. “Insurance coverage is a really highly effective enabler for commerce finance,” she mentioned, particularly in extremely regulated markets.

John-Martin Ndawula of the Africa Finance Company (AFC) spoke about utilizing the establishment’s investment-grade ranking to construction inexpensive financing. He cited Egypt’s 2023 Samurai bond deal, the place AFC acted as re-guarantor, for instance of utilizing innovation to convey down borrowing prices. Ndawula additionally careworn the significance of growing native capital markets, pointing to Nigeria’s InfraCredit as a promising mannequin.

Leonard Kange of Nigeria’s Financial institution of Trade mentioned the excessive value of finance for SMEs stays a problem. In 2024 the BOI raised €2bn via a structured deal that used AFC ensures to bypass the penalties related to Nigeria’s sovereign ranking. “Modern structured options and partnerships are required,” he mentioned, including that such offers assist deploy capital sustainably.

Dalvim Pipa of Angola’s Capital Market Fee mirrored on efforts to develop Angola’s capital markets, which stay dominated by public debt. Since 2022, privatisation and new monetary devices have been launched to advertise competitors and scale back capital prices. Nevertheless, he acknowledged that cultural hesitancy round market participation stays an impediment. “We try to interrupt the present tradition of concern by sharing data and interesting extra actively with potential traders,” he mentioned.

Energy of partnerships

In his closing remarks, Benjamin Mugisha, chief underwriting officer at ATIDI, praised the standard of dialogue all through the AGM. He mentioned a stage taking part in subject was important if African nations had been to boost finance on sustainable phrases. Mugisha thanked the federal government of Angola for internet hosting and all stakeholders for contributing to wealthy and thought-provoking discussions.

ATIDI’s journey over the previous 25 years illustrates the facility of partnerships and regional solidarity in tackling the continent’s structural boundaries.

Whether or not supporting mega infrastructure tasks, derisking cross-border commerce, or enabling SME finance, ATIDI believes that threat, when understood and managed, generally is a highly effective driver of alternative.