The Sunday News
GOVERNMENT is working towards registering with the Africa Trade Insurance Agency before the end of the year as it forges ahead to assure political risk and trade credit risk insurance cover to potential foreign investors, a Cabinet official said.
Industry and Commerce Minister Cde Mike Bimha said Government had completed a number of formalities for it to be admitted as a member of ATI.
He said he had been attending the ATI Annual General Meetings for the past three years as an observer.
“We did the other things that are supposed to be done in terms of signing the treaty and doing everything but we are now supposed to pay the subscriptions for us to become a member.
“The beauty of it is that most of the countries particularly the investors even in Asia cannot talk about investing in our country or trading with us until we become a member,” Minister Bimha said.
ATI is Africa’s export credit agency which provides political risk and trade credit risk insurance products with the objective of reducing the business risk and cost of doing business in Africa.
Its main goal is to help increase investments into African member countries and two-way trade flows between Africa and the world. It facilitates exports, foreign direct investment into and trade flows within the continent.
ATI was launched in 2001 with the financial and technical support of the World Bank and the backing of seven African countries.
Since 2003, it has supported over $13 billion worth of trade and investments across the continent, secured an investment grade rating of ‘A’ from Standard and Poor’s, and expanded membership with plans to attract even more African member countries and international financial institutions in the near term.
It has 10 member states namely Benin, Burundi, Democratic Republic of Congo, Kenya, Madagascar, Malawi, Rwanda, Tanzania, Uganda and Zambia.
Cde Bimha said the African Development Bank and a number of local financial institutions had pledged to assist Government with payment of subscriptions.
“The good news is that the African Development Bank at their last visit they confirmed that they will give us assistance on the subscriptions and the Governor of the Reserve Bank of Zimbabwe (Dr John Mangudya) has also coordinated the other financial institutions locally so that it will be partly by our own institutions and also partly by the African Development Bank.
“So we believe that before the end of the year we will become a fully paid member of ATI and that will boost our confidence in terms of covering against trade and political risk,” Minister Bimha said.
Zimbabwe National Chamber of Commerce past president Mr Obert Sibanda said the development was likely to build investor confidence in the country.
“From a business perspective it’s a welcome development because at some stage we (captains of industry) were pushing for that and even in our latest business manifesto we emphasised on issues to do with policy framework, infrastructural development and all things to do with the country’s risk. Whether it’s perceived or real risk, it needs to be addressed so as to build investor confidence,” he said.
