CEO Today Africa Awards

KENYA 27 www.ceotodaymagazine.com CEO Today Africa Awards 2018 expropriating their assets to payment default or delay on a contract. ATI’s preferred creditor status provides investors with some comfort because the projects it insures are prioritized for payment by member governments in the event of a claim. Under this agreement, member governments are obligated to reimburse ATI for any claims they may cause to an ATI- supported transaction and failure to reimburse ATI could lead to ATI debiting their share capital. This feature acts as a shield against losses and it has been one of ATI’s most important assets. In your opinion, how complex is the insurance market in Africa? Historically, apart from South Africa, the penetration rate for insurance in Africa has been below 5%, while globally, Africa contributes less than 1% of premium to the sector. Among the challenges are low capitalisation and high saturation which prevents diversification. Lack of proper regulation and structures has also stunted innovation. On this front, I would say that the industry hasn’t been very complex, but this is changing. With a mandate to support the sector, ATI has helped increase local insurance capacity through, for example, various reinsurance treaties. As a result, companies can now offer new products and in-turn become more competitive. The growth of the financial sector has also helped create new innovations. Banks, in fact, are ATI’s biggest clients due in part to Basel regulations. With ATI’s products, banks can get capital relief to enable them to lend more with lower capital. In this regard, ATI has effectively become a key link making it possible for international banks to partner with local banks. The insurance market is closely linked to economic growth and because African economies are on the rise, I see this sector following the same growth trend. How has your experience as Regional Director of the African Reinsurance Corporation affected your current role and work today? Africa Re taught me the importance of valuing staff contributions, maintaining flexibility and openness to new concepts and innovations. This has helped ease my path in ATI and ultimately led to our record profits, for which I’m incredibly humbled. During my tenure at ATI, profits have increased by over 1,000%, and Share Capital has increased by 105%. How would you like to see ATI develop in the future? We are entering a new phase of growth that should make ATI a force across the continent, particularly in the energy sector. My ultimate vision is for ATI to become the first stop for any investor doing business in Africa. In the next five years, we aim to increase Premium Income from the current $45 million to $120 million with a Gross Exposure above $7 billion. A larger ATI that is still nimble and responsive to the needs of its clients and member governments could easily become an even more important and strategic partner for investors. ATI is a dynamic organisation. With only 45 staff, many partners are surprised with what we are able to do. While we plan to expand our staffing to accommodate anticipated growth in the coming years, I’m confident that ATI will maintain its record-setting trajectory with efficiency and, as always, with an eye towards excellence! www.ati-aca.org Q Q Q