Etihad Credit Insurance (ECI), the UAE federal export credit company, and African Trade Insurance Agency (ATI), established by seven Common Market for Eastern and Southern Africa (COMESA) countries, have signed a reciprocal reinsurance agreement to strengthen non-oil trade ties and boost bilateral exports by providing trade credit insurance and trade finance solutions to businesses.
The agreement aims to support joint Emirati and African ventures in their own countries, as well as their collaborative initiatives in other countries by sharing risks enabling these companies to grow trade globally, the two entities said in a joint statement.
The deal follows the memorandum of understanding signed in March last year to enhance the global competitiveness of exporters by improving their awareness of export credit and trade finance solutions.
Trade between the UAE and Africa has steadily grown in recent years, with the UAE becoming the fourth-biggest investor in Africa last year by investing in 71 projects worth $5.64 billion, the statement said, citing global consultancy Knight Frank.
Recently, ECI partnered with Israel Export Insurance (ASHRA) to provide buyer’s credit guarantees supporting a healthcare project in Ghana, which involves the construction of four hospitals and a central medical storage facility in the country.
ECI, in association with its British counterpart UK Export Finance (UKEF), has also supported a major initiative in Senegal to bolster its national emergency response capabilities sector.
(Writing by P Deol; Editing by Anoop Menon)