Risk Mitigation: Africa’s Key to Unlocking Investment & Global Competitiveness in the Grain Trade Souvik Banerjea, Sr. Marketing Officer Presentation to the Grain Trade Summit 1 October, 2013 Mombasa, Kenya

How does risk come into the picture?

Global Trends ● Agriculture represents app. 60% of most African economies and a large percentage of SMEs. ● Banks are more risk averse tightening lending requirements which largely impacts SMEs ● World Bank estimates that 30 – 37 million SMEs are financially underserved representing a credit financing gap of between $140 – 170 billion

What Our Clients Tell Us: Current Challenges in the Agricultural Sector Z $1.9 m 1.No access to loans 2.No access to $$ from foreign investors & governments unable to offer credit facilities 3.Challenges expanding into new markets ● Banks and clients require supplier credit ● High risk that your debtor may default ● Access to credit information on potential buyers ● Currency exchange and transfer issues

How Can We Help? “We provide the safety net”

Trade Credit Insurance Z $1.9 m A practical definition:  Credit Insurance covers SUPPLIERS against the non-payment risks of their accounts receivables with local and foreign customers (BUYERS). 

Trade Credit Insurance Benefits ● You can become more competitive: Your supplier can be insured against your non-payment risk so that you can do business on credit terms ● It frees up your money: Trade Credit Insurance is a cheaper alternative to Letters of Credit ● The option of covering one buyer or all your buyers: We can cover a tender or your entire turnover ● Banks can use the policy as collateral: This provides access to $$ ● We provide access to credit information on your buyers

Client: A vegetable wholesaler Country: Kenya Insured Turnover: $2–10 mln Transaction Details: Client Motivation – to avoid losses to buyers in Europe & Middle East and to get assistance with debt collection. Recent Projects Agricultural Exports

Client: A regional bank Country: Southern Africa Insured Amount: $40 mln Transaction Details: Client Motivation – The bank set up a grain purchasing facility for a govt. agency enabling them to buy grain directly from farmers. Recent Projects Grain Purchasing Facility

Our Products $3.1 m Z $1.9 m$1.3 Rwanda $1.1 Kenya $749 Uganda $349 Burundi $130 Madagascar Protects investors against financial losses in the event of a political or terrorist- motivated event Protects against any unfair action or inaction by a government that would negatively affect your business or investments Non-payment or delayed payment by a private, sovereign or sub-sovereign buyer 1. Bid 2. Advance payment 3. Performance 4. Customs & Warehousing Political Violence, Terrorism & Sabotage Insurance Political Risk Insurance Trade Credit Insurance ATI can offer a combination of all products for comprehensive coverage as well as co-insurance or reinsurance on specific products. Surety Bonds

Political Risk Insurance Covered Risks ● Transfer Restriction ● War and Civil War (Business interruption or Physical damage) ● Embargo ● Expropriation (includes Confiscation, Deprivation, Nationalisation, Forced Abandonment, Selective Taxation, Unilateral Cancellation of Contracts/Licenses, Backtracking on Investment Incentives ● Unfair Calling of Bonds ● Sovereign/Sub-Sovereign Non-payment ● Non-honouring of Sovereign Guarantees

Feedback from Clients “Because of ATI, my business was able to….”

Why ATI? ● “Financially Sound” – over $156 million capital ● “Trusted” – an S&P rating of ‘A/Stable’ since Highest rated insurer and the second highest rated institution in Africa ● “International partners” – we regularly partner with international insurers and financial institutions ● “Proven track record” – we have facilitated over $10 billion in trade and investments in our African member countries ● “Recognition” – AI (Africa Investor magazine) gave ATI the award for best export credit agency for two consecutive years (2011 & 12)

ATI Headquarters Kenya-Re Towers | Upperhill, Nairobi My Contacts Souvik Banerjea Tel: Our Website ATI Contacts Africa’s Export Credit Agency

ATI Headquarters Kenya-Re Towers | Upperhill, Nairobi ATI Rwanda Office Ground Floor, Prester House | Boulevard de l’Umuganda | Kacyiru, Kigali ATI Tanzania Office 1st Floor, Private Sector Hs | Mwaya Road Dar es Salaam ATI Uganda Office Workers House, 9th Floor Southern Wing | Plot 1 Pilkington Road | Kampala ATI Zambia Office Kwacha House Annex, Cairo Road, Lusaka, ATI Contacts

Questions?