ATIDI gross exposures grew 22% in 2022

Africa Trade and Investment Development Institution (ATIDI) recently announced a significant increase in its gross exposures in 2022, growing by 22 percent to $8 billion. This development is seen as a measure of increased potential for premium income, highlighting the institution's resilience and growth potential even amidst challenging economic circumstances. Despite experiencing a 6 percent decline in net profit, ATIDI's Chief Finance Officer, Gladys Karuri, expressed pride in the institution's performance over the past year. In a recent interview with CNBC Africa's Julius Bizimungu, Karuri reflected on ATIDI's achievements in the face of ongoing challenges, particularly in the wake of the COVID-19 pandemic and subsequent global economic disruptions. She emphasized the institution's growth in gross exposures as a positive indicator of its ability to generate business and sustain growth. Notably, ATIDI witnessed significant contributions from West Africa in 2022, in addition to underwriting substantial policies in countries like Ethiopia. Karuri also addressed concerns about the impact of global economic events, such as the war in Ukraine, on ATIDI's business operations. While acknowledging the indirect effects of such events on African governments and economies, she highlighted ATIDI's strong foundation for continued and sustainable growth. Despite the muted growth in 2022 compared to previous years, Karuri emphasized ATIDI's commitment to supporting African countries through developmental initiatives. The interview delved into the topic of increasing exposures and the associated risks for ATIDI. Karuri acknowledged the potential for higher liabilities with growing exposures but reassured stakeholders of the institution's risk management strategies. By maintaining a retention rate of less than 15 percent and collaborating with world-leading reinsurers, ATIDI aims to mitigate risks effectively and ensure financial stability. Furthermore, Karuri discussed ATIDI's investment strategies and the decline in net investment income in 2022. Despite a 37 percent decrease in net investment income, she clarified the factors contributing to this decline, including foreign currency fluctuations and conservative investment practices. ATIDI's focus on high-rated investments and matching assets and liabilities demonstrates its commitment to financial prudence and long-term stability. Looking ahead, ATIDI has outlined key strategies to enhance its capital base and expand its reach. By targeting additional institutional investors and seeking to raise $200 million in tier two capital, the institution aims to strengthen its financial position and support future growth initiatives. Collaborating with development finance institutions and fostering partnerships with African countries, ATIDI remains dedicated to facilitating sustainable development across the continent. In conclusion, ATIDI's financial performance in 2022 reflects a balance of growth, resilience, and strategic planning amidst evolving global challenges. With a focus on risk management, prudent investments, and collaborative partnerships, ATIDI continues to play a vital role in supporting economic development and infrastructure projects in Africa.