Addis Ababa, June 30, 2023 (FBC) – The Federal Democratic Republic of Ethiopia and the Federal republic of Germany (KfW) have signed Grant Agreement concerning Increase of Ethiopia’s equity contribution to African Trade Insurance (ATI).
It is stated that the total finance envelope of the agreement project is 21 million Euros (1.25 billion Birr).
According to Ministry of Finance, the signed grant shall be used to increase Ethiopia’s membership contribution to the African Trade Insurance agency (“ATI”) which is ATI is a pan-African insurance agency, based in Nairobi, Kenya.
ATI was established in 2001 by seven African countries with technical and financial support from the WB and AfDB.
The aim of the institution is to promote trade and investment by offering competitive insurance solutions for commercial and political risks and thus to advance the development of economic growth in Africa.
This grant is an integral part of the German government’s support to Ethiopia’s strategy to become a middle-income country by 2030 and its transition to a private-sector-driven economy, it is indicated.
The insurance of direct investment has the potential to directly secure and promote jobs in Ethiopia.
The Agreement was signed electronically by Semereta Sewasew, State Minister of Finance and Christoph Tiskens Director Eastern Africa and African Union and Thomas Prien Portfolio Manager (Principal) KfW Group KfW Development Bank, on behalf of the Federal Democratic Republic of Ethiopia and on behalf of the Republic of Germany, respectively.