ATIDI Provides Zimbabwe with US$300M Insurance Coverage

by Adenike Adeodun

In the last six years, Zimbabwe has received over US$300 million in insurance support from the African Trade and Investment Development Insurance (ATIDI). Now, Nairobi-based ATIDI is considering more projects in southern Africa, possibly enhancing Zimbabwe’s backing.

In 2016, Zimbabwe joined what was then Africa Trade Insurance to uplift its investment climate. This partnership offers Zimbabwe insurance against potential trade and investment risks.

Newsday mentioned that ATIDI’s chief, Manuel Moses, said the aid to Zimbabwe, especially in sectors like energy, finance, and trade, was around US$77 million. He stated, “2022 exposure to Zimbabwe was only 1% of our total, but we see room for more collaboration.”

ATIDI had a total exposure of US$694.12 million in southern Africa. Their total gross exposure jumped from US$6.6 billion in 2021 to US$8 billion in 2022, driven by countries seeking insurance after the COVID-19 disruptions.

Moses emphasised ATIDI’s reliability during global crises like the pandemic or geopolitical tensions. Their steady profitability during such times proves their strength.

Last year, ATIDI shareholders, including Zimbabwe, invested a US$5.2 million dividend back into the company. This move strengthened ATIDI’s capacity to fund more projects and enhance trade in Africa. Moses said, “With a 2022 capital of US$553 million, we managed business ventures with a US$8 billion gross exposure, which means we can offer 14 times the cover for every capital dollar.”

Though ATIDI’s profit fell 6% last year due to the impact of the Ukraine conflict, Moses underscored their careful strategy during the pandemic, focusing on risk management over fast profits.

In 2022, political issues and financial challenges made ATIDI adopt a more cautious risk strategy. Still, Moses remains hopeful, stating, “Despite challenges, we’re optimistic about 2023.”

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