What often unlocks progress is not the absence of risk, but the confidence that those risks can be understood, managed and mitigated. As African Trade & Investment Development Insurance (ATIDI) marks its 25th anniversary at its Annual General Meeting from 30 June to 3 July in Nairobi, its journey reflects the transformation of Africa's investment landscape - by providing innovative insurance solutions that help de-risk trade and investment, build confidence among partners and turn Africa's potential into opportunity.
Twenty-five years ago, Africa presented a very different proposition to investors. Many of the continent's economies were emerging from periods of political and economic turbulence, navigating the difficult path towards stability and growth. Capital markets were relatively shallow; infrastructure deficits were acute, and perceptions of risk often outweighed recognition of opportunity.
In 2000 foreign direct investment (FDI) flows into Africa stood at approximately $9bn, reflecting the limited scale of international capital them reaching the continent. While investment flows increased, they remained concentrated in a handful of countries and sectors, with financing for major infrastructure and industrial projects continuing to be difficult to secure. Unlocking Africa's potential required greater confidence, stronger partnerships and solutions capable of bridging the gap between risk and investment.
It was against this backdrop that ATIDI was established in 2001. Its objective Is straightforward: to help reduce the risks that deter investors and lenders from committing capital to African markets.
Originally published by African Business.