Buhari Signs Agreement on African Trade Insurance

Posted by African Examiner African News, Business News, Insurance, Latest Headlines Tuesday, August 11th, 2020

By Eric Ojo, Abuja

(AFRICAN EXAMINER) – President Muhammadu Buhari has signed the instrument of accession of the agreement for the establishment of the African Trade Insurance Agency.

The Agreement and the Agency are registered with the Secretariat of the United Nations in accordance with Charter of the United Nations.

The agreement recognizes the fact that lack of adequate political, non-commercial and commercial risk insurance is a significant impediment to the availability of finance for investments in Africa and the expansion of African foreign trade and intra-Africa trade.

A memorandum from the Minister of Justice and Attorney-General, Abubakar Malami, stated that the request for the President’s signature on the agreement was sequel to the directive of the Federal Executive Council, that the instrument be prepared and forwarded for execution.

Similarly, the agency when executed will acknowledge previous multilateral efforts made by African States towards regional economic integration through co-operation in trade liberalization and development so as to attain sustainable growth, promote economic activity and create an enabling environment for foreign trade, as well as cross-border and domestic investments.

The cardinal purpose of the agency is to provide, facilitate, encourage and otherwise develop the provision of, or the support for, insurance, including coinsurance and reinsurance, guarantees, and other financial instruments and services, for purposes of trade.

Its other objectives include, investment and other related productive activities in African States in supplement to those that may be offered by the public or private sector, or in cooperation with the public or private sector.

The agreement is also in tandem with the economic objectives and aims of the African Union (AU). Meanwhile, there are several African Treaties on regional economic integration, such as the Treaty Establishing the Common Market for Eastern and Southern Africa, the Treaty Establishing the Southern African Development Community and the Treaty Establishing the Economic Community of West African States.

The ratification was adopted at Grand Bay in the Republic of Mauritius on the Eighteenth Day of May, 2000.