The level of uncertainty on the continent is hampering the
flow of the Foreign Direct Investment, so says the African Trade Insurance Agency (ATI),
reports ITRealms.
ATI, ITRealms recalls
was founded in 2001 by African States to cover the trade and investment risks
of companies doing businesses on the continent, thus providing political risk, surety
bonds, trade credit insurance and political violence and terrorism as well as sabotage
cover among others.
According to ATI in a press statement made available to ITRealms and endorsed by Sherry Kennedy,
for African governments, part of what is at stake are much needed foreign
direct investments and access to affordable financing necessary to spur
development and, specifically, to close the estimated USD900 billion
infrastructure gap.
Kennedy noted that at a recent roundtable in Nairobi,
Ministers from across Africa sat together with investors and the private sector
to determine how best to tackle the investment and credit risk hurdles in order
to make African risks bankable, stressing that it came at a time of
geopolitical uncertainties which, according to the World Bank, could lead to
“higher borrowing costs or cut off capital flows to emerging and frontier
markets”.
Equally, ATI highlighted that the private sector stands to
lose billions of dollars in lost opportunities if the requirements for a
favourable investment environment are not adequately addressed.
The roundtable was part of the Annual General Meeting of
ATI, and witnessed open remarks from the President of Benin, H.E. Patrice
Talon.
Ayo Midele/GEE with additional reports from APO
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