ATIDI seeks $500 million to offset Middle East war costs
ATIDI seeks $500 million to help African nations manage costs from the Middle East war. Rising prices have driven a 20 percent spike in trade finance demand.
Africa's leading multilateral trade risk insurer is seeking approximately $500 million in additional capital to assist countries facing surging costs due to conflict in the Middle East. The African Trade & Investment Development Insurance (ATIDI) had already planned to expand its $1 billion capital base before military actions involving Israel and Iran in late February signaled a potential spike in global inflation. CEO Manuel Moses stated that the regional crisis has made the need for expansion urgent.
"Demand is coming faster than we can absorb with our current balance sheet."
Given the current economic climate, the insurer aims to increase its total capital to roughly $1.5 billion. This move is designed to support member states as they deal with higher prices for energy and other commodities caused by trade disruptions. On average, member countries are seeking to increase their trade finance limits by 20% to cover the rising cost of imports.
In addition to the immediate capital boost, Moses is proposing the creation of a separate $1 billion financing facility to help the organization respond more quickly to future emergencies. This request comes as traditional development aid from wealthier nations, led by the United States, has been scaled back. Moses is currently holding discussions with potential donors during the World Bank's Spring Meetings in Washington.
ATIDI currently receives backing from several international partners, including the United Kingdom, India, Italy, and Japan. Moses emphasized that any recapitalization should be part of a broader, coordinated international response to the economic impact of the Middle Eastern crisis.
"This is not something we can respond to in isolation - it has to be a system‑level response."
The insurer's role is critical to regional stability, as each dollar of capital is leveraged approximately 10 times. Since its founding in 2001, ATIDI has supported $93 billion in trade and investment, providing an average of $10 billion in support annually over the last five years.
