Ghana joins African Trade Insurance to improve credit ratings

Ghana has signed an agreement with the African Trade Insurance (ATI) Agency to be a member of the group.

The ATI which is an insurance corporation has insured over 6 billion dollars’ worth of investment in Africa.

The signing of the agreement between Ghana and the ATI will enabled Ghana to complete its shareholding and membership into the agency, qualifying the country to seek insurance packages from the ATI.

This is expected to improve the country’s credit ratings and also attract more investors into Ghana’s private sector for development.

Deputy Minister for Finance, Charles Adu Boahen stated that being a member of the ATI can help a developing country like Ghana derisk its debt portfolio.

“The ATI is rated by all these international rating agencies like S&P, and the rest. Being a member means that you have a cover when venturing into international agreements for huge facilities,” he stressed.

His explained that as an insurance package, Ghana is expected to make some financial commitment, however,  the German government through its agency the KfW took the cost upon itself to pay over 16 million euros for Ghana to qualify and be a member of the ATI.

On his part, the CEO of the ATI, John Lentaigne was of the view that Ghana joining the agency will de-risk the country’s debt portfolio and make the country attractive.