Ethiopia and Germany have signed a 21-million-euro grant agreement to increase Ethiopia’s equity contribution to the African Trade Insurance (ATI), according to the Ministry of Finance.
The grant is an integral part of Germany’s support to Ethiopia’s strategy to become a middle-income country by 2030, and its transition to a private-sector-driven economy.
According to the ministry, this grant shall be used to increase Ethiopia’s membership contribution to the African Trade Insurance agency (ATI), which is a pan-African insurance agency established by seven African countries in 2001.
The aim of the institution is to promote trade and investment by offering competitive insurance solutions for commercial and political risks, and thus to advance the development of economic growth in Africa, it was learned.
The insurance of direct investment has the potential to directly secure and promote jobs in Ethiopia, the ministry stated, adding that through this contribution an increase in insurance transactions with a focus on private sector growth in Ethiopia is expected to be mobilized.
The membership of the African Trade Insurance also plays a critical role in securing international investment and increasing business activity.
The grant agreement between Ethiopia and Germany was signed today electronically by Eastern Africa and African Union Director, Christoph Tiskens, KfW Development Bank Portfolio Manager Thomas Prien, and State Minister of Finance, Semereta Sewasew.
Source: Ethiopian News Agency