The African Trade and Investment Development Insurance agency plans to double its capital to $2 billion within approximately two years, significantly expanding its ability to support infrastructure and private investment across Africa. The Nairobi-based institution, known as ATIDI, says the additional capital could allow it to provide as much as $20 billion in guarantees annually.
Guarantees designed to unlock investment
ATIDI was established 25 years ago to reduce the financial and political risks associated with investing in African markets. It provides insurance and guarantees that protect lenders and investors against problems including payment defaults, political instability, expropriation and contractual failures.
Such protection can improve a project’s credit rating, reduce borrowing costs and make investments more acceptable to pension funds, insurance companies and international financial institutions. This is particularly important for infrastructure projects, which often require large amounts of long-term capital but may be considered too risky without additional security.
Chief executive Manuel Moses said ATIDI’s ability to expand is currently limited by its capital base. Doubling that capital could increase its annual guarantee capacity from a targeted $10 billion to around $20 billion.
New shareholders being sought
The institution is owned by 24 African states and several institutional investors, including African financial organisations and Germany’s KfW Development Bank, which became a shareholder in April.
ATIDI is now holding discussions with France, other members of the Group of Seven and approximately 30 African countries that have not yet joined the organisation. Securing new shareholders will be essential if the capital increase is to be completed within the expected two-year period.
The African Development Bank has already strengthened its involvement. Earlier this year, the bank increased its ownership in ATIDI from 3 per cent to 14 per cent through a $125 million capital injection.
Africa faces a vast financing gap
African governments and development institutions are searching for new ways to finance roads, railways, ports, energy systems, water networks and digital infrastructure. The continent’s annual infrastructure financing gap is estimated at around $100 billion.
Traditional sources of development finance have come under pressure as international aid budgets decline and heavily indebted governments face higher borrowing costs. Guarantees are therefore becoming central to efforts to attract private capital without requiring governments or development banks to finance entire projects directly.
African pension, insurance and sovereign wealth funds are estimated to control trillions of dollars in assets. However, much of this money is invested outside the continent or in government securities because infrastructure projects frequently lack investment-grade ratings.
Projects across the continent
ATIDI has previously supported major projects including a modern railway in Tanzania and Safaricom’s expansion from Kenya into Ethiopia. It has also helped African governments restructure expensive borrowing through debt swaps and sustainability-linked financing facilities.
The proposed expansion could enable the agency to support substantially larger projects and spread risk across more countries and sectors. A guarantee does not represent direct project spending, but it can mobilise several times the amount of capital committed by the guarantor.
Opportunity must be balanced with caution
The strategy could help Africa use more of its own institutional savings while attracting international investors. However, guarantees create contingent liabilities if projects fail. Strong project selection, transparent contracts and effective oversight will therefore be essential.
If ATIDI secures the planned capital, the institution could become a central component of a new African financing architecture, helping convert projects currently considered too risky into investments capable of attracting long-term private funding.
Newshub Editorial in Africa – 8 August 2026
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