After recent success identifying Africa Trade Insurance Agency (ATI) as an entity with the ability to underwrite credit risk for the Warehouse Receipts System in Malawi, the USAID Southern Africa Trade Hub is now supporting another Feed the Future country, Mozambique, to become an ATI member country in order to take advantage of the agency’s export and investment insurance. The Trade Hub traveled to Mozambique this week to make preparations for ATI workshop training and sensitization sessions with key industry stakeholders scheduled for May 2015.
Working closely with USAID Mozambique’s SPEED project (Support Program for Economic and Enterprise Development), the Trade Hub visited key Ministry personnel in Trade and Commerce, Finance, and Agriculture to advise on the benefits of Mozambique’s engagement with the African Trade Insurance Agency. The activity will result in a detailed presentation for government ministries to understand the procedures for membership and the benefits Mozambique can attain by becoming an ATI member country.
ATI offers credit risk Insurance in exports and imports, which will attract bankers and local insurance companies to participate in the financing of agricultural commodities through forward supply contracts and warehouse bond insurance. Lower risk exposure will stimulate competitive participation between banks to finance WRS. The Trade Hub has been actively facilitating the development of ATI insurance coverage for the Feed the Future countries of Malawi, Mozambique, and Zambia to mitigate financial risks associated with the countries’ commodity exchanges and increase trade volumes.