The move, according to the Ministry of Planning, would help boost industrialisation and strengthen the government's debt sustainability efforts.
Ghana invests $17.6 million in shareholding as it joins the African Trade Insurance Agency
Ghana has signed onto the African Trade Insurance (ATI) Agency, with shareholding valued at $17.6 million.
The Minister of Planning, Professor George Gyan-Baffour who represented the Minister of Finance, Mr Ken Ofori-Atta announced the country's membership of the organisation at a press conference in Accra.
He noted that with the ATI, the government could attract commercial financing at a level comparable to what more developed economies obtained.
"This means financing at better terms and longer duration, which can help pay off more expensive debts and create a more sustainable debt management process," he said.
The Minister explained that the ATI was a unique institution because “the list of benefits it brings to countries goes beyond insurance,” noting that the organisation operated on the level of investments and trade by supplying the insurance that fueled all major investments and trade transactions in other regions of the world.
“In Africa, this type of insurance has been in short supply, largely because African economies got a late start to development than more developed regions,” he explained.
As a result, he said, the operations of the ATI in the country would have a positive impact on other sectors of the economy, including financial services, manufacturing, trade, as well as energy.
“The important energy sector will also be on the winning end of this partnership with the ATI. Through the ATI’s Regional Liquidity Support Facility (RLSF), backed by KfW, Ghana can help mitigate the negative impacts of climate change,” he said.
About the African Trade Insurance (ATI)
The ATI is a multilateral pan-African institution that provides insurance guarantees which help its member states to attract investments and spur trade with increased access to credit.
The agency underwrites (covers) credit and political risk insurance, and joining it will enable Ghana to enjoy better borrowing terms, as well as boost foreign direct investments.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: