Africa’s leading multilateral insurer of trade risk is seeking about $500-million (R8.1-billion) in capital from partners to support countries that face higher costs as a result of conflict in the Middle East, its chief executive told Reuters.
African Trade & Investment Development Insurance was seeking to increase its existing capital base of close to $1-billion even before US-Israeli airstrikes on Iran at the end of February unleashed a war that is likely to increase inflation across the globe.
The insurer’s CEO Manuel Moses told Reuters that the Middle Eastern crisis had made the problem urgent.
“Demand is coming faster than we can absorb with our current balance sheet,” Moses said in an interview. “Given what is happening now, we probably need to take that to about $1.5-billion.”
Financing facility for future emergencies
In addition, Moses said he was keen to set up a separate financing facility of about $1-billion to help it respond more quickly to similar situations in the future.
He said higher prices for energy and other commodities caused by disruption to trade flows meant member countries were seeking to increase their trade finance limits by an average of 20% to help cover more expensive imports.
Demand for the guarantees and insurance ATIDI provided had already increased as richer countries, led by the US under President Donald Trump, scaled back development aid.
Moses did not name potential donors but said he was holding discussions with them as countries gather in Washington this week for the World Bank’s spring meetings. Existing backers include Britain, India, Italy, and Japan.
He said any recapitalisation of ATIDI should be part of a broader system response to the impact of the Middle Eastern crisis.
“The institutions are already asking what the response should be, and we want to be part of that solution,” Moses said. “This is not something we can respond to in isolation—it has to be a system‑level response.”
Underlining the broader economic value of supporting the insurer, he said each dollar in capital is leveraged about 10 times and has supported $93-billion in trade and investment since the insurer was founded in 2001 and $10-billion a year over the last five years.
- Africa's leading multilateral trade insurer, African Trade & Investment Development Insurance (ATIDI), seeks $500 million in additional capital to support countries facing higher costs due to the Middle East conflict.
- ATIDI aims to raise its capital base from close to $1 billion to around $1.5 billion, responding to increased demand from member countries amid rising inflation and disrupted trade flows.
- CEO Manuel Moses plans to establish an additional $1 billion financing facility for quicker responses to future emergencies.
- Increased demand follows diminished development aid from wealthier countries like the US, prompting member countries to seek 20% higher trade finance limits for costly imports.
- Moses emphasized that recapitalization should form part of a coordinated, system-level response to the crisis, with existing backers including the UK, India, Italy, and Japan.
