Africa’s infrastructure guarantees platform, the African Trade and Investment Development Insurance (ATIDI), plans to double its capital to $2 billion over the next two years as it seeks to mobilise more private investment for infrastructure projects across the continent.
According to Reuters, ATIDI Chief Executive Officer Manuel Moses said the planned capital expansion would strengthen the institution’s capacity to de-risk investments and support Africa’s growing demand for infrastructure financing.
The announcement comes as African governments and development finance institutions increasingly embrace guarantee-backed financing models to attract private capital for projects across transport, energy, telecommunications and other critical sectors.
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According to Reuters, Manuel Moses said ATIDI’s ambition is to increase its capital base to $2 billion, although achieving the target will depend on securing additional shareholders over the next two years.
Reuters reported that discussions are underway with France, other G7 countries and around 30 African nations that have yet to join the Nairobi-based institution.
Established 25 years ago, ATIDI provides political risk insurance and investment guarantees that reduce investment risks and encourage greater private sector participation in infrastructure and development projects across Africa.
According to Reuters, ATIDI is owned by 24 African member states alongside institutional investors, including Germany’s KfW Development Bank, which joined the organisation earlier this year.
Reuters also reported that the African Development Bank (AfDB) increased its shareholding in ATIDI from 3% to 14% after investing $125 million, reinforcing the continent’s broader push to expand guarantee-backed financing.
Manuel Moses said doubling the institution’s capital would enable ATIDI to increase its annual guarantee capacity from $10 billion to $20 billion, significantly expanding support for infrastructure investment across Africa.
According to Reuters, ATIDI has already backed major projects including a modern railway in Tanzania, Safaricom’s expansion into Ethiopia and financing arrangements that have enabled several African countries to refinance expensive debt through innovative financial instruments.
What This Means For Africa
Africa’s infrastructure financing needs continue to outpace available public resources, making private investment increasingly important to the continent’s long-term economic transformation.
According to Reuters, institutions such as ATIDI are playing a growing role in reducing investment risks through guarantees that make large infrastructure projects more attractive to domestic and international investors.
The African Development Bank’s increased investment in ATIDI also reflects a broader continental strategy to mobilise African and global capital for development through innovative financing mechanisms rather than relying solely on traditional development assistance.
If ATIDI succeeds in doubling its capital, the institution could significantly expand its ability to support projects that improve regional connectivity, strengthen energy access, facilitate trade and accelerate industrial development across Africa.
Greater guarantee capacity could also help unlock billions of dollars in private investment, supporting governments’ efforts to close Africa’s infrastructure financing gap while promoting more sustainable and resilient economic growth.
ATIDI’s planned capital expansion signals Africa’s growing confidence in guarantee-backed financing as a powerful tool for attracting private investment, accelerating infrastructure delivery and supporting the continent’s long-term economic development.
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Image Credit: Financial Afrik
