African Trade and Investment Insurer Confirms Tanzania’s ‘Satisfactory’ Economic Performance Amid Headwinds in 2022

African Trade and Investment Development Insurer (ATIDI) Board Members in Kigali, Rwanda July 6, 2023

By TZBN Staff and Agencies

The Pan-African Trade and Investment Development Insurer, ATIDI (previous known as ATI) has listed Tanzania among “several African countries” which performed  quite well economically in 2022 despite difficult economic conditions globally.

An ATIDI report from Kigali, Rwanda, made available to TZBN says a combination of the COVID-19 pandemic as well as its lingering economic impact, the Russia-Ukraine conflict and climate change have tested Africa’s economic resilience since 2020.

The region’s economic growth slowed down to 3.6% from 4.1% in 2021, with a large number of countries struggling with debt vulnerability, inflation, fiscal consolidation and the disruption of value chains, the report says.  Despite this challenging environment however,  several African countries, including ATIDI members Benin, Côte d’Ivoire, Kenya, Rwanda, Tanzania and Uganda, managed to sustain positive growth in 2022.

ATIDI held its Annual General Meeting (AGM) in Kigali during the first week of July, 2023. The organization was founded as ATI in 2001 by African States to cover trade and investment risks of companies doing business in Africa. It predominantly provides Political Risk, Credit Insurance and Surety Insurance.

The Kigali report supports a Q2-2023 Bank of Tanzania bulletin which describes the Tanzania economy as performing  relatively well in 2022:

“Performance of the economy in 2022 was satisfactory, although it was undermined by challenges caused by the war in Ukraine and frequent COVID-19 resurgence, particularly in China. In the third quarter of 2022, the economy grew by 5.2 percent compared with 5.5 percent in the corresponding period in 2021,” the Bank of Tanzania bulletin says.

“Main growth drivers were transport and storage, agriculture, mining and quarrying, construction, and financial and insurance activities.  Fastest growing activities during the quarter were information and communication, accommodation and restaurants, and financial and insurance activities.

“The outturn was largely associated with expansion of broadcasting and internet services in the country, increase in tourist arrivals, and growing bank deposits and credit to private sector.

“National debt stock was USD 40,122.8 million at the end of December 2022, a quarterly increase of USD 1,661.4 million. External debt (public and private) accounted for 72.4 percent of the debt stock, while public debt (external and domestic) was 80.6 percent of the national debt stock. External debt stock recorded a quarter-on-quarter increase of USD 1,707.7 million to USD 29,049.1 million at the end of December 2022, mainly on account of disbursements that outweigh debt service, and exchange rate fluctuations,” BoT says.

Rwanda’s Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana Delivers speech at ATIDI annual general meeting in Kigali (Photo Credit: ATIDI)

Meanwhile  ATIDI – formerly operating under the brand African Trade Insurance Agency (ATI) – unveiled its new brand identity, ATIDI – which portrays its evolution and its commitment to the role of Africa’s top development insurer and a catalyst of the continent’s development.

The AGM in Kigali will validate ATIDI’s results in 2022, which up to 2021 had posted 11 consecutive years of steady profits.   ATIDI has grown from a small African start-up, operational in just seven countries in 2001, into a pan-African institution with 21 member countries, presence across Africa and a significant global reach.

In April 2023, Angola became ATIDI’s latest and first Lusophone member state, while Japan’s Export Credit Agency, NEXI is the newest institutional shareholder, with USD14.8 million capital injection, having joined in June 2023. The organization continues to expand its continental footprint, thanks to support from its strategic development partners such as the African Development Bank (AfDB), the European Investment Bank (EIB) and the German Development Bank (KfW), the Kigali report says.