Japan’s export credit agency, Nippon Export and Investment Insurance (NEXI), has acquired a stake in the African Trade Insurance Agency (ATI), a Pan-African guarantee institution, following a capital infusion of $14.8 million.

The equity investment supports the cooperation between Africa and Japan under the Tokyo International Conference on African Development (TICAD), ATI said in a statement.

“As Japan expands its foreign direct investments and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent but will also attract more Japanese investors under the African Continental Free Trade Area (AfCFTA),” said ATI Chief Executive Officer Manuel Moses.

NEXI Chairman and CEO Atsuo Kuroda stated that the agency will continue to work closely with ATI to encourage more Japanese companies to make international trade and investments in Africa.

In 2019, the two organisations established a ‘Japan desk’ in ATI’s Nairobi office to support African development and commercial projects.

The desk has assisted Japanese and African businesses with an active gross exposure valued at $1.1 billion in the information & communication, financial & insurance activities, and construction sectors in Côte d’Ivoire, Egypt, Ethiopia and Nigeria.

ATI was founded in 2001 by African states to cover the trade and investment risks of companies doing business in Africa.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)