Trade between the United Arab Emirates (UAE) and several African nations has registered steady growth.
Etihad Credit Insurance (ECI), the UAE Federal export credit company, and African Trade Insurance Agency (ATI) signed a reciprocal reinsurance agreement to strengthen trade ties and boost exports between the two markets by providing trade credit insurance and trade finance solutions to businesses.
The deal follows the Memorandum of Understanding (MoU) each entity signed in March 2021 to enhance the global competitiveness of exporters by improving their awareness of export credit and trade finance solutions. The initiative encourages them to use risk-mitigating tools against commercial and political risks.
Under the agreement, signed by Massimo Falcioni, CEO of Etihad Credit Insurance and Manuel Moses, CEO of ATI, both organisations aim to support joint Emirati and African ventures in their own countries. The arrangement will also help the companies share risk, allowing for global trade growth.
Emphasising the significance of this strategic alliance, Falcioni said, “This collaboration will provide UAE exporters real confidence to access the African region’s diverse markets and resources with state-backed guarantees, safeguarding against commercial and political uncertainties.”
Moses said, “This deal with ECI is a major step to strengthen our commitment to providing risk solutions to businesses, investors, and commercial lenders interested in doing business in the UAE and Africa.
Deepening our ongoing partnership, this reinsurance agreement will pave the way to trading opportunities for businesses to improve their regional and global competitiveness.”