ATIDI not only weathered the storm but thrived

You took over as ATIDI’s CEO three years in the past with the aim of strengthening the enterprise’ developmental mandate, specializing in assist for commerce and investments in addition to the non-public sector in Africa, whereas on the similar time rising the enterprise’ repute and model globally. Might you define the successes you’ve had and what you’ve achieved on this regard?

Manuel Moses: I assumed management on the peak of the Covid-19 pandemic, and it’s secure to say that uncertainty was pervasive. Nevertheless, we rallied collectively, adapting to the challenges and never solely survived however emerged even stronger. Our enterprise thrives in a counter-cyclical method, which proved advantageous.

Throughout this time, we performed a pivotal function in supporting essential sectors like healthcare and the meals provide chain. Concurrently, we launched into a rebranding journey to raised replicate our developmental mission, which revolves round offering commerce and funding insurance coverage. ATIDI now has a crystal-clear technique, aiming to double our enterprise throughout the subsequent 5 years. As a strategic transfer, we’re actively increasing our involvement in commerce financing, recognising its indispensable function in facilitating intra-African commerce.

Whereas issues did come up, they weren’t as catastrophic as anticipated. Our exposures proved to be resilient and able to withstanding important strain. This was a testomony to the thoroughness of our threat evaluation course of and experience. When demand plummeted, many firms have been left struggling to remain afloat. Nevertheless, ATIDI not solely weathered the storm but additionally thrived within the face of adversity, by promptly recognising the altering market situations, adjusting our methods accordingly and dealing with the lenders, so as to faucet into rising alternatives.

Africa stays a beautiful funding vacation spot with distinctive alternatives ready to be tapped into. And with a inhabitants of over 1.3bn folks, the continent boasts a younger and rising inhabitants, an rising center class in addition to ample pure assets equivalent to oil, fuel, minerals and arable land, which offer profitable funding alternatives throughout numerous sectors.

These components create a conducive surroundings for enterprise growth and profitability. Subsequently, there’s completely no purpose why one shouldn’t spend money on Africa, particularly with the safety offered by ATIDI’s investment-grade score of A/Secure by S&P and A/Optimistic by Moody’s, which not solely present a way of safety for potential buyers but additionally be certain that buyers can navigate by means of any uncertainties with confidence. Now’s the opportune time to grab the untapped potential that lies inside Africa’s borders, because the continent continues on its path in direction of growth and integration.

Additionally it is essential to notice that African governments have made important strides in bettering their enterprise environments. Many nations have applied pro-investment insurance policies and streamlined laws to draw overseas direct investments. Moreover, regional integration initiatives just like the African Continental Free Commerce Space (AfCFTA) promote intra-African commerce and create a extra conducive surroundings for buyers.

ATIDI is dedicated to supporting inexperienced vitality initiatives. What key achievements have you ever made in Africa, and what do you contemplate to be your key long-term objectives on the subject of internet zero?

Even earlier than the Covid-19 pandemic, the world was slipping right into a local weather disaster. We’ve been doing our half as an organisation by selling inexperienced energies.

ATIDI’s assist for inexperienced vitality initiatives has targeted on financing renewable vitality gaps initiatives by means of our core merchandise that are the African Vitality Assure Facility (AEGF) and the Regional Liquidity Help Facility (RLSF).

AEGF is a consortium of European Funding Financial institution (EIB), KfW and Munich Re that gives ATIDI with entry to a pool of reinsurance capability of €821m.

RLSF is a joint initiative of ATIDI, the KfW Improvement Financial institution and the Norwegian Company for Improvement Cooperation (Norad) that’s designed to handle the short-term liquidity dangers confronted by IPPs that promote electrical energy to state-owned energy utilities – bettering bankability and serving to such initiatives attain monetary shut.

Our achievements embrace assist to renewable vitality initiatives in Burundi (Mubuga Photo voltaic PV), Malawi (Salima, Golomoti and Nkhotakota Photo voltaic PV) and Uganda (Salima, Golomoti), to call just some.

In easy phrases, internet zero means decreasing greenhouse fuel emissions as near zero as doable, with all remaining emissions being reabsorbed by the ambiance, by the oceans and forests. Commitments to internet zero should be supported by credible actions. The vitality sector is right now accountable for round three quarters of greenhouse fuel emissions and holds the reply to approaching internet zero. For instance, rising vitality from renewable sources, equivalent to wind or solar energy, would considerably cut back carbon emissions.

To realize this, many obstacles should be eliminated and buyers should be given confidence, and ATIDI regularly explores market gaps to develop revolutionary merchandise. That is the case with our RLSF and AEGF merchandise which we’ll enhance and adapt to market wants, together with the event of extra initiatives prone to appeal to local weather finance.

Do you anticipate to revolutionise the funding panorama to any extent in Africa and in that case, how?

ATIDI’s function is to assist buyers to cowl the true and perceived funding dangers in Africa. Up till the top of 2022 we supported commerce and funding transactions valued at over $78bn in Africa. We provide an funding grade score to African sovereigns who’re predominantly sub funding grade. Our “A” score performs a pivotal function in empowering member states to entry world monetary markets with lowered borrowing prices, in the end selling financial progress and stability throughout the continent.

We’re displaying that every one these funds couldn’t have come to Africa if the notion was that of excessive threat. Our imaginative and prescient is that by simply our monitor report, buyers get to see that the notion is just not the fact.

ATIDI’s presence and ensures improve the creditworthiness of a rustic within the eyes of lenders and buyers. When buyers see that their investments are protected in opposition to political dangers equivalent to expropriation or breach of contract, they might be extra keen to spend money on that nation. Consequently, African governments can appeal to extra FDI, which may cut back their reliance on expensive debt financing.

ATIDI not too long ago insured a €300m mortgage facility issued by Deutsche Financial institution to the Authorities of Tanzania. Are you able to clarify the significance of this deal?

This transaction stands out as one of many pivotal achievements in our portfolio this 12 months. It exemplifies our very important function in supporting our member states in two elementary methods: firstly, by enabling them to entry worldwide markets, and secondly, by aiding them in securing decrease funding prices.

ATIDI coated a Time period Mortgage Facility of as much as €300m whose function was to finance infrastructure initiatives included within the nation’s 2022/2023 price range. The power serves as a facilitator for essential financial sectors aligned with the ESG objectives, together with infrastructure, training, and healthcare. This aligns completely with ATIDI’s core mission, as we try to fulfil our developmental function and be certain that our assist instantly impacts the lives of the folks.

Moreover, our assist demonstrates ATIDI’s dedication to align with the nation’s growth agenda as envisioned in its Nationwide Improvement Imaginative and prescient 2025 and reiterates ATIDI’s dedication to companion with the federal government to handle key financial drivers in Tanzania. This transaction serves for example of how ATIDI is partnering with African governments to advance our member state’s essential developmental objectives and we’re proud to have achieved that for the federal government of Tanzania and in lots of different African nations throughout the continent.