By 
About US$2 billion worth of trade and investment transactions have been supported by the African Trade and Investment Development Insurance (ATIDI) in Zambia’s key economic sectors.
These transactions cover a period dating from 2001 to-date, and covers sectors such as energy, mining, agriculture and financial institutions.
Formerly known as the African Trade Insurance Agency (ATI), the institution had been providing insurance coverage against political and credit risks across its member countries.
In countries like Zambia, ATIDI had played a significant role in ensuring that funders and investors of the country’s energy, mining and agriculture sectors as well as financial services were protected against these risks.
Senior Underwriter in charge of Southern Africa, Pizzaro Lukhanda, revealed these developments to Zambia Monitor in an exclusive interview in Lusaka on Monday.
Lukhanda said from inception the institution had supported Zambia with transactions amounting to US$2 billion, which translated to K38.350 billion over a 20-year period.
Lukhanda said the level of financial transactions supporting Zambia’s economic sector signified the importance the institution attached to the country’s growth aspirations.
He explained that this was in line with its developmental mandate, which is anchored on providing insurance for trade and investment to financial institutions, investors and traders, most importantly coverage against political and credit risks.
Lukhanda added that Zambia provided a strategic market for the institution as evidenced by the insured exposure, stating that the country hosts ATIDI regional office for Southern Africa.
He also pointed out that ATIDI’s total insured exposures at the close of 2022 had reached US$8 billion, representing a year-on-year growth of more than 20 percent.
Lukhanda further stated that the organization posted strong growth in its total assets, investment income, as well as its equity capital which stood at US$553 million as at the end of 2022.
It reported that the gains compensated a modest deterioration in certain areas.
According to the financial report, the net written premium grew by five percent and the gross premium declined by seven percent in the fiscal year ending December 2022 at US$133.3 million compared to the previous year’s performance of US$143.5 million.
In the year under review, the organisation recorded a net profit of US$32.8 million, which was a slight decline of six percent.
He said this was owing to increase in net claims provisions due to business growth.
In the same period, Lukhanda said ATIDI was able to declare a dividend of US$8.2 million in 2022.
On its rebranding efforts, he said: “The rebrand emphasizes who we are as an organization and our growing role. The rebranding was prompted by the need to align the brand with the organization’s work and its developmental impact on Africa.”
Lukhanda said the rebranding aimed at adapting the needs of member countries in delivering critical risk solutions for investing and doing business in Africa.
“ATIDI had come from being a small-sized African multilateral with seven African members at inception in 2001 to a pan-African institution with 22-member countries today, with several more countries expressing interest in joining ATIDI and are at various stages of completing the membership process,” Lukhanda said.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments