AfDB Approves $125 Million Investment to Boost African Trade

The funding also supports the Bank’s Ten-Year Strategy for 2024–2033, which places a strong emphasis on economic transformation, industrial development and job creation.

The African Development Bank Group (AfDB) has approved a $125 million equity investment in the African Trade and Investment Development Insurance (ATIDI), a move designed to strengthen trade and investment across the continent by reducing financial and political risks faced by businesses. Approved by the Bank's Board of Directors on 22 May, the investment will help ATIDI expand its ability to provide political risk insurance, trade credit insurance and other financial protection products that encourage investment in African markets.

As businesses continue seeking opportunities across Africa, many investors remain cautious because of concerns about political instability, payment risks and uncertain business environments. ATIDI's role is to help reduce those concerns, making it easier for companies to invest and trade with greater confidence.

Strengthening Support for Investment and Regional Trade

ATIDI, formerly known as the African Trade Insurance Agency, works with governments, investors and businesses throughout its member countries by providing insurance products that protect against commercial and political risks.

The new investment will strengthen the organisation's capital base, allowing it to respond to growing demand for risk mitigation services. Officials believe this will encourage greater levels of foreign direct investment while also supporting trade between African countries.

The initiative aligns closely with the African Continental Free Trade Area (AfCFTA), which seeks to increase economic integration and boost regional commerce across the continent. By helping businesses manage risk, the investment is expected to support new projects, cross-border transactions and private-sector growth.

Long-Term Partnership Focused on Development

African Development Bank Vice President for Private Sector, Infrastructure and Industrialisation Solomon Quaynor said the investment reflects the institution's commitment to supporting private-sector solutions and increasing financing opportunities throughout Africa.

The funding also supports the Bank's Ten-Year Strategy for 2024–2033, which places a strong emphasis on economic transformation, industrial development and job creation.

ATIDI Chief Executive Officer Manuel Moses described the investment as another important milestone in the long-standing relationship between the two organisations. Since the African Development Bank became a member of ATIDI in 2013, both institutions have collaborated on projects aimed at expanding insurance coverage, reducing investment risks and supporting major development initiatives across the continent.

Moses said the strengthened partnership would contribute to Africa's evolving financial architecture while helping unlock larger volumes of trade and investment. Leaders from both organisations believe the additional capital will play an important role in supporting sustainable economic growth and creating new opportunities for businesses throughout Africa.