The African Trade & Investment Development Insurance (ATIDI) relies on its priority repayment status to maintain operations when other lenders withdraw, CEO Manuel Moses said at the multilateral insurer’s annual general meeting on Wednesday.
The preferred creditor status- which ensures ATIDI gets repaid before other creditors - helps the insurer preserve its credit rating and secure vital reinsurance coverage, Moses said.
“It is not just a legal principle; it is fundamental to our ability to deliver on our mandate. Adhering to PCS [preferred creditor status] ensures we can operate confidently, even in challenging environments, and it reinforces investor trust in our long-term viability,” he said.
Moses said that as a multilateral financial organisation, ATIDI is expected to step in when others step back, especially during periods of economic distress.
“That makes our role inherently more challenging and risk-laden than that of commercial lenders. PCS provides the framework that enables us to manage these risks responsibly. It affirms that, even in difficult times, member states will continue to honour their commitments to ATIDI in line with the principles set out in our Treaty and Participation Agreements,” he said.
“This assurance is what empowers us to keep delivering on our mandate and to stand firmly with our member states when they need us most.”
Moses said the preferred creditor status helps to safeguard ATIDI’s investment-grade credit ratings. This, in turn, allows us to access capital markets on competitive terms, the executive said.
The status is also key to securing reinsurance capacity from global markets. More than 85% of our gross exposure is reinsured, Moses said.
- Merck Foundation TV premieres
- Merck Foundation TV premieres
- Ecobank profit tumbles
- MRP petitions prison services over jailed members
Keep Reading
“Reinsurers rely on the certainty PCS provides when evaluating ATIDI’s risk profile. Any ambiguity around this status undermines their willingness to backstop our commitments and, by extension, limits our ability to underwrite transformational infrastructure projects,” he said.
“...PCS ensures the long-term sustainability of our institution. It provides a credible path to recover funds we disburse in claims, preserving our capital base and enabling us to continue serving our member states, today and into the future.”
ATIDI’s 25th AGM is running in Luanda, Angola, from June 18 to 21.
It is being held under the theme, Turning risk into opportunity: securing a Sustainable Future.
