Chinese insurer helping to spur Africa's economic growth, says African insurer

Source: Xinhua| 2019-04-01 21:46:19|Editor: Yurou
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NAIROBI, April 1 (Xinhua) -- China Export and Credit Insurance Corporation (Sinosure) is helping to spur Africa's economic growth, the Pan-African investment insurer, African Trade Insurance Agency (ATI), said on Monday.

George Otieno, CEO of ATI, told Xinhua in Nairobi that Sinosure insures most of China Exim Bank loans to African countries.

"Sinosure helps to catalyze Africa's economic growth because it provides insurance to loans extended by Chinese banks to finance infrastructure projects in the continent," Otieno said.

He said that without the insurance cover, Chinese banks would be reluctant to provide loans to African governments.

"So, Sinosure has helped to unlock critical finance to fund infrastructure projects in Africa," he added. ATI said that it wants to partner with Sinosure to provide cover to investors and traders in Africa.

"We have the local expertise in Africa and so we are able to underwrite loans for financing projects in Africa," Otieno said.

According to the ATI CEO, the insurer has capacity to partner with Sinosure because last year it provided insurance cover to investment and trade projects worth 500 billion shillings (5 billion U.S. dollars) in Africa.

Otieno noted that Sinosure is likely to require partners in its insurance business in Africa in order to diversify its risk.

He observed that foreign investors still perceive Africa as a risky continent for business and hence need to provide political risk guarantees.