Zim increases shares in ATI

BUSINESS REPORTER

 

Zimbabwe has increased its shares in African Trade and Insurance Agency (ATI) after reinvesting a dividend of US$300,000 in the pan-African institution that provides political risk insurance to companies, investors, and lenders interested in doing business on the continent.

By reinvesting the dividend, Zimbabwe’s shares rose to 135 from 132 in 2020.

ATI declared a dividend of US$6.8m in 2021, which was reinvested into the business.

“Our class A and B shareholders have committed to reinvesting their dividends for 5 years starting 2020. This is a very positive gesture that speaks to the highest level of confidence that the shareholders have in ATI. The capitalisation of dividends has helped fund our capital growth thereby enabling us to write more business and to sustain our high growth with our exposures having tripled in the last 5 years to US$6.6bn,” ATI said.

Zimbabwe became a member of ATI in 2016. ATI’s gross exposure to Zimbabwe was US$85,835,00 in 2021.

ATI supports African countries like Zimbabwe by providing investment and trade credit insurance products, for investors and project companies.

These specialist classes of insurance are internationally used to make cross border investments attractive to lenders, traders and equity investors and to ultimately increase foreign direct investment.

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