By Noela EBOB BISONG (with reports)
The African Trade & Investment Development Insurance – ATIDI, and the Multilateral Investment Guarantee Agency – MIGA, (part of World Bank Group Guarantees), have signed a three-year partnership which has as main focus to accelerate foreign direct investment across Africa. The event took place recently in Washington DC, United States of America.
This is the second agreement between the two organisations aimed at maximising development impact. The Agreement will set up mechanism to measure progress and results as well as joint marketing initiatives to strengthen cooperation and explore new investment opportunities. The agreement framework underscores the commitment of MIGA and ATIDI to create a world free of poverty on a livable planet. The two organisations aim to mitigate investment risks by pooling resources, thereby accelerating sustainable economic growth in Africa.
According to the CEO of ATIDI, Manuel Moses, the partnership which enables “more investment to finance transformational projects is vital to Africa’s sustained development. MIGA and ATIDI’s de-risking solutions are essential to achieve this crucial agenda. Beyond signing of this agreement, we look forward to a dynamic collaboration with MIGA, to leverage our institutions’ respective assets for the benefit of our continent.”
The partnership also seeks to improve efficiency in joint project due diligence, maximising cost savings and eliminating duplication.
In his reaction to the deal, MIGA Executive Vice President, Hiroshi Matano, said, “Our partnership with ATIDI will enable us to support countries in Africa in scaling and replicating development projects, thereby accelerating prosperity. This agreement will play a significant role in helping the continent attract foreign investment for key development projects.”
The agreement framework emphasizes mutual reliance, accountability, and comparability and it is hoped that each party will regularly share operating standards and procedures to help identify comparable outcomes to further both organisations’ development mandates.
The two bodies have agreed to set up mechanisms to measure progress and results, including reports on joint projects, new products, capital mobilized, and reduced project processing times. Moreover, both parties will carry out joint marketing efforts, training, and seminars to strengthen cooperation and explore new investment opportunities in Africa.
ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. Since inception, ATIDI has supported USD85 billion worth of investments and cross border trade into Africa. ATIDI provides Political Risk, Credit Insurance and Surety Insurance.
MIGA saw the light of day in 2024, with purpose to consolidate all guarantee products and experts from across the World Bank Group institutions. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries.