The Ethiopian national parliament on Wednesday ratified a draft bill allowing Ethiopia to join the African Trade Insurance Agency (ATIA).
Chairperson of Parliament’s Budget and Finance Affairs Standing Committee, Genet Taddese, said joining the African Trade Insurance Agency enables the country to offer political and trade credit risk insurance services for investors as well as to attract foreign direct investment.
“The Agency won’t affect Ethiopian insurance companies as it does not offer similar services as well as violate the financial regulations stated by the National Bank of Ethiopia,” she said.
The African Development Bank (AfDB) provided 7.5 million US dollars loan for Ethiopia to join ATIA and to buy a share in the agency. With the stated amount, Ethiopia can buy 75 shares and become a shareholder in ATIA.
Benin, Burundi, DRC, Kenya, Madagascar, Malawi, Rwanda, Tanzania, Uganda and Zambia are shareholder in ATIA. ATI was launched in 2001 with the financial and technical support of the World Bank and the backing of seven African countries.
Since 2003, ATI supported over 17 billion US dollars worth of trade and investments across the continent. The AfDB recently joined as shareholder and partner by funding countries to join ATI.
Signature : APA