Togo and Benin have knocked Kenya off the top ownership of the African Trade Insurance Agency (ATI) after injecting unspecified additional capital into the pan-African Institution.
Togo has increased its stake to 8.5 percent stake in ATI based on its paid-up capital which now stands at Sh4.69 billion ($35.4 million), according to the institution’s records as of June 2022.
Benin’s stake meanwhile stands at 7.98 percent, with its capital at Sh4.4 billion ($33.3 million).
Kenya, which had been the top shareholder over the years, has meanwhile been relegated to third place with a 7.29 percent stake based on its capital contribution of Sh4 billion ($30.4 million).
Kenya’s stake has dropped from 7.99 percent in December 2021 when its capital stood at $29.2 million (Sh3.8 billion at current exchange rates).
Member States have been increasing their investment in ATI through new capital contributions or reinvesting their dividends.
Despite Kenya’s weakened hold, Nairobi is set to remain as the headquarters of the pan-African trade insurer with the market nevertheless representing the bulk of ATI operations.
“Kenya was the founding shareholder and has been the largest shareholder until 2022. In our treaty, Kenya was given the permanent right to be the headquarter of our agency,” ATI Chief Executive Officer Manuel Moses told the Business Daily in an interview.
“Kenya needs to step up as the head office to cement its leadership. It however remains the leader from an operational perspective. The institution is shortly expected to add Angola as the 21st member country as part of its strategy to expand its shareholder base. Besides countries, ATI is owned by several companies and development banks.
The agency provides political risk cover to firms, investors and lenders interested in doing business in Africa.
Since its founding in 2000, it says it has underwritten trade and investments worth Sh9.48 trillion ($72 billion) with the value of underwriting standing at Sh1.05 trillion ($8 billion) last year.