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ATI has recently expanded its coverage on several fronts offering new innovative products, can you touch on the offering to Zambian stakeholders?
Zambia is one of the founding shareholders of ATI. ATI was formed to facilitate the development of trade, investments and other productive activities in its African Member States by providing insurance or reinsurance covers against political and credit risks as well as bond products. Political risk insurance provides coverage to investors, financial institutions, and businesses that face financial loss due to political events. Political events covered under political risk insurance include expropriation, political violence, sovereign and sub-sovereign debt default, and acts of terrorism or war etc. Credit Risk Insurance covers suppliers and lenders against default by buyers and borrowers. In addition, ATI has developed expertise and capacity in the energy sector with the help of EIB and KFW. While our energy-specific solutions apply to all energy projects, both conventional and renewable, our products contribute to the realization of the UN’s SE4All.
To date, ATI has supported transactions worth in excess of USD2bn in Zambia since inception. The sectors supported include mining, agriculture, energy, and financial services, to mention but a few.
As one of the speakers at the 10th edition of the Zambia International Mining & Energy Conference, can you share with us a brief outline of your intervention and what you are hoping to learn from attending the event?
While Africa has so much potential in the mining and energy sectors, the continent is still viewed as a risky investment destination. ATI’s intervention in bridging the financing gap in mining and energy projects is through making lenders/financiers comfortable to lend, thereby crowding in the much-needed investment in the sectors and thus bridging the financing gap. Lenders’ major worries include whether the project/project sponsors will repay the loan. Non-payment could be caused by either political or credit risk or, indeed both. By mitigating risks around project financing, ATI is playing its role of facilitating investment into the country.
In terms of what to expect to learn, I will keep mind open and be receptive to different perspectives around development of sufficient, sustainable energy to satisfy Zambia’s ambitious mineral production goals.