Introduction
African Trade and Investment Development Insurance (Atidi) has achieved a remarkable financial milestone, with its net profit tripling to a record $69.1 million for the financial year ending December 2023. This growth is attributed to the increased uptake of its political and credit risk products across the continent.
Record-Breaking Profit
Atidi's net profit soared from a restated 2022 figure of $22.7 million, which was initially reported as $32.8 million but adjusted to comply with the International Financial Reporting Standard (IFRS) 17. This substantial growth underscores the effectiveness of Atidi's risk mitigation solutions and strategic initiatives.
CEO's Statement
"We are happy to report that 2023 has been the best financial performance in Atidi's history," said Atidi CEO Manuel Moses during the annual general meeting in Zambia. This achievement highlights the soundness of Atidi's business fundamentals, strategy, and resilience.
Surge in New Business
Atidi secured new business worth $226 million last year, a significant 70% increase from $133 million in the previous year. This surge reflects the growing reliance of African governments and private enterprises on Atidi's insurance products.
Expansion of Member Countries
In 2023, new countries such as Angola and Mali joined Atidi, while existing members, including Senegal, Tanzania, Benin, Côte d'Ivoire, Niger, Ethiopia, and Nigeria, expanded their insurance coverage. Burkina Faso and Chad became the latest member states in early 2024. This expansion increased Atidi's gross exposure to $9.6 billion, marking a 19% growth from $8.1 billion the previous year.
Growth in Assets and Shareholders’ Funds
Atidi's total assets increased by 27% to $837 million, and shareholders' funds rose by 25% to $700 million from $516 million. Atidi aims to reach a capital base of $1 billion by the end of 2027, demonstrating its long-term growth strategy.
Dividend Approval
Shareholders approved a dividend of $17.3 million, more than doubling the $8.3 million paid based on the previous year’s performance. This payout reflects the company's robust financial health and commitment to rewarding its investors.
Endorsement of Financial Stability
"All these are a testament to the resilience of Atidi amidst a difficult period for most African economies, as well as a sound strategy and commitment to its execution," said Gladys Karuri, Atidi’s Chief Finance Officer. Atidi's strong financial performance has also been recognized by credit rating agencies, maintaining an A rating from S&P and A3 from Moody’s, despite credit downgrades in some of the countries it operates in.
Historical Context and Product Offerings
Atidi began offering political risk insurance in 2001 with the support of the Common Market for Eastern and Southern Africa (COMESA) and the World Bank. The objective was to encourage foreign investment in Africa. This was later expanded to include credit risk insurance, providing private companies with the confidence to engage in trade.
