African Trade Insurance Agency (ATI) and Etihad Credit Insurance (ECI), the UAE Federal Export Credit Company, struck a reciprocal reinsurance agreement to expand trade relations and exports between the two markets. By offering businesses trade credit insurance and trade finance options, this is accomplished.
The agreement builds upon the Memorandum of Understanding (MoU) that each party signed in March of last year in order to increase exporters' ability to compete globally by raising their awareness of export credit and trade finance options and promoting the use of risk-reduction strategies to combat economic and political risks.
By sharing risks and enabling these businesses to expand their global trade, the agreement, signed by Massimo Falcioni, CEO of Etihad Credit Insurance, and Manuel Moses, CEO of ATI, aims to support joint Emirati and African ventures in their own countries as well as their collaborative initiatives there.
Falcioni stressed the importance of this strategic partnership by saying: "We at ECI are happy to reinforce that heritage with the help of ATI. The UAE and the African continent share illustrious historical bilateral trade links. By working together, the UAE will be able to access the diverse markets and resources of the African continent with state-backed guarantees and safety nets against business and political risks.
Moses said, "This partnership with ECI is a significant step in solidifying our dedication to provide risk solutions to companies, investors, and commercial lenders interested in conducting business in the UAE and Africa. This reinsurance agreement will open the door to unrivalled trading opportunities for firms to increase their regional and worldwide competitiveness, further strengthening our already strong collaboration."
The UAE became Africa's fourth-largest investor last year after investing $5.64 billion in 71 various projects, contributing to the region's recent steady expansion in trade.
In particular, the UAE wants to profit from the continent's several fast-growing industries, such as tourism, infrastructure, energy, transportation, logistics, and IT.