Release date: 3 July 2020
Promoter – Financial Intermediary
AFRICAN TRADE INSURANCE AGENCYLocation
Description
Financing the membership contribution of Senegal in the capital of the African Trade Insurance Agency (ATI). Such participation will enable Senegal and in particular its private sector, to benefit from the guarantee mechanism and trade investment instruments offered by ATI and help mitigate the effects of the COVID-19 pandemic through providing economic resilience support.
Objectives
Becoming a member of ATI will enable Senegal to access a range of guarantee instruments and other investment and trade insurance products offered by ATI. The operation will benefit both i) local private sector actors including small and medium-sized enterprises (SMEs) through the provision of an extensive set of financing tools in support of investment and trade and ii) foreign investors, thereby enhancing access to FDI for the country's economy. In addition to private sector enterprises including MSMEs, ATI can usefully support PPP projects complementing DFI and commercial bank financing, for example in the energy sector. As a result, the operation will support industrial development, manufacturing and trade across various productive sectors of the economy. This type of financing support is particularly needed at this time, in view of the severe impacts of the COVID-19 crisis on African economies. It is also fully aligned with EU policy for the region. The project is expected to contribute to several Sustainable Development Goals (SDGs), in particular to inclusive economic growth (SDG 8) and to poverty reduction (SDG 1). The operation is also aligned with Senegal's national development plan - Plan Senegal Emergeant (PSE) which is on the second phase of its implementation and which relies on a prominent role for the private sector and seeks to attract FDI.
Sector(s)
- Services - Financial and insurance activities
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 300 million
Environmental aspects
Given the nature of the services sought, no relevant environmental/social impact associated with the Republic of Senegal becoming a shareholder of ATI.
Procurement
The promoter will have to ensure that implementation of the project will be done in accordance with EIB's Guide to Procurement.
Status
Signed - 3/11/2020
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).