HARARE, Aug 8 – The African Trade and Investment Development Insurance (ATIDI) plans to double its capital base to $2 billion within the next two years, seeking to strengthen its capacity to de-risk infrastructure projects and attract greater volumes of private investment into Africa.
The Nairobi-based insurer’s expansion comes as African governments and development finance institutions pursue new approaches to mobilising the hundreds of billions of dollars required to close the continent’s infrastructure financing gap.
ATIDI Chief Executive Manuel Moses said the institution’s ability to expand is primarily constrained by its available capital and that increasing its shareholder base will be central to achieving the target.
According to Moses, “Our ambition is to get to $2 billion … what limits us is capital,” adding that the process would depend on securing additional shareholders and would likely take approximately two years. “We want to do it as soon as possible,” he said.
ATIDI is currently holding discussions with France, other G7 countries and around 30 African nations that have yet to join the institution, according to Moses.
He said, “We have to convince these countries, these partners to speed up their processes.”
Established 25 years ago, ATIDI provides insurance and guarantees designed to reduce investment risks in African markets and encourage private capital to participate in projects that might otherwise struggle to secure financing.
The institution is owned by 24 African countries alongside institutional investors, including African financial institutions and Germany’s KfW Development Bank, which became a shareholder in April.
The African Development Bank (AfDB) has also significantly increased its involvement in ATIDI as part of a broader effort to develop new financing mechanisms for African infrastructure. The AfDB increased its stake in ATIDI to 14% from 3% earlier this year, contributing $125 million to the institution.
The larger capital base is expected to translate into substantially greater guarantee capacity. The AfDB President said in May that ATIDI’s increased financial strength could allow the insurer to raise its annual guarantee volumes to $10 billion.
Moses expects the proposed capital expansion to go further, saying that doubling ATIDI’s capital could enable the institution to provide up to $20 billion in annual guarantees.
ATIDI has already supported infrastructure and investment projects across the continent, including a modern railway project in Tanzania and the expansion of Kenyan telecommunications company Safaricom into neighbouring Ethiopia.
The insurer has also supported African governments in reducing financing costs through debt swaps and sustainability-linked financing arrangements, broadening its role beyond traditional political and investment risk insurance.
The proposed capital increase would therefore strengthen ATIDI’s ability to absorb investment risks while enabling development finance institutions and private investors to participate in larger infrastructure projects.
For Africa, where limited fiscal space and high borrowing costs continue to constrain infrastructure development, expanding guarantee providers such as ATIDI could become an increasingly important part of efforts to mobilise private capital and finance long-term economic growth.
