As of the end of May 2022, Ghana has $450 million in insurance coverage supported by the African Trade Insurance Agency (ATI) for projects and trade-related activities in various industries.
ATI, a multilateral insurer, continues to fill the gap by offering risk insurance on the African continent between sovereigns and investors as well as debtors and suppliers, with a covered portfolio of trade and investments valued at $6.6 billion in 2021.
Manuel Moses, the chief executive and chairman of the African Trade Insurance Agency, stated during a media appearance that the organisation had received numerous inquiries from both the private sector and sovereign governments.
"Both the sovereign and the private sector have made several requests. By the end of May 2022, our total exposure from projects we've completed in Ghana will be worth around $450 million. Although it is still early, the nation has responded strongly.
"We accept prices. As an illustration, suppose a trader is selling items to a client on credit and another person offers to give the merchant a percentage of the money if they lose it, regardless of what happens to the buyer. Given that we reimburse portion of the money lost by a firm or nation, the dialogue therefore takes place between us (African Trade Insurance Agency) and the issuer.
Additionally, Mr. Moses disclosed that his company earned $34.84 million in profit in 2021.
He claimed that the organisation earned a total of $6.6 billion in gross income.
"Money was donated to the ATI by each of the 12 institutional stakeholders and each of the 20 member nations. Together, that sum of money is now worth $516 million, and by leveraging it with the insurance concept, we were able to transact transactions worth $6.6 billion, he said.
According to the agency, it is eager to provide coverage for Ghana and other African nations so they may take full benefit of the African Continental Free Trade Area.
Mr. Moses claims that one of the goals of his organisation is to make trading less risky, and as a result, it will help Ghana and other nations increase their trade.
"Basically, that's what we do. What we mean is that sometimes when investors or traders wish to trade among themselves, they do so on open credit, but occasionally the traders may overexpose the clients, which may lead to the clients' incapacity to pay. We step in at that point to offer the seller some consolation by insuring them and enticing them to sell on credit since they know they can always rely on us if something goes wrong.
The promotion of intra-African commerce is one of the goals of the AfCFTA, and he emphasised that "we feel we operate on the same tangent."