- Ati said in a statement yesterday that since inception in 2001, it has facilitated a total of $1 billion (Sh2 trillion) worth of investments and trade into many sectors in Tanzania.
Dar es Salaam. The African Trade Insurance Agency (Ati) seeks to double its trade and investment facilitation programmes in Tanzania during the coming few years as it seeks to help the country get the needed amount to upgrade its infrastructure, it was announced in Dar es Salaam yesterday.
Ati said in a statement yesterday that since inception in 2001, it has facilitated a total of $1 billion (Sh2 trillion) worth of investments and trade into many sectors in Tanzania.
“The institution’s current pipeline could potentially double this amount of Foreign Direct Investment coming into Tanzania over the next few years alone,” the statement reads.
This comes at a time when the Ati is hosting an international conference in Dar es Salaam tomorrow that will bring together key stakeholders from the public and private sectors with the objective of finding solutions to the country’s current energy challenges.
The conference goes with the theme of: “Unlocking Investments to Maximize Tanzania’s Energy Potential, will also explore ways of building more energy capacity to the grid and to help the utility clear its existing debt.
Tanzania is a founding shareholder in Ati, with a $17 million (about Sh37 billion) investment.
The Pan African institution was founded in 2001 by member states of the Common Market for Eastern and Southern Africa (Comesa) with the support of the World Bank and later the African Development Bank to protect investments of potential investors by offering political risk and investment cover and a range of other solutions.
Ati is a respected and an investment grade rated institution with an ‘A’ rating from S&P and capitalisation of nearly $200 million (about Sh435 billion). “Most international financiers and lenders simply cannot invest in most African countries due to their sub-investment grade ratings without an institution like Ati standing behind these transactions. If Ati is not present, the cost of borrowing would make it impossible for the government to borrow. With Ati backing, the government is therefore able to borrow at more reasonable rates, attract more investments into the sector and secure new projects that will ultimately improve infrastructure and add to the electricity capacity,” notes John Lentaigne, Ati’s recently appointed Chief Underwriting Officer.