ECOWAS / African Trade Insurance

Project name : ATI-ECOWAS PARTNERSHIP
Country : KENYA
Name of client : ECOWAS
Type of Assignment : N/D
Project Description :  

Governments of the ECOWAS region have (amongst many other things) always strived to attract more Foreign Direct Investments (FDI) so as to tap into the region’s economic potential. However, their attempt to foster a climate that inspires confidence to the international investors’ community and create an environment that helps businesses to grow and prosper, has often been diluted by the unstable political environment in most member States. This instability results from social tensions and shifting policy behaviors of some Governments, all of which remain beyond investors’ control. Indeed, a cheer number of investors make sovereign guarantees from individual Member States’ governments, a pre-requisite to investing in the region.

Attending the requests by international investors for politically related risks protection, the Policy Organs of the ECOWAS comforted by the dispositions of their own Treaty (in its Article 51-e) which makes provision for “the establishment of an investment guaranty mechanism in the ECOWAS region to assure the safety and security of investments and to facilitate access to finance”, have directed the ECOWAS Commission to take practical measures for the effective implementation of “THE PROJECT” i.e. the setting-up of an investment guaranty mechanism for the ECOWAS region.

On May 16th 2014, the President of the ECOWAS Commission has formally inaugurated THE PROJECT IMPLEMENTATION COMMITTEE (PIC) and on behalf of the Council of Ministers, gave it its mandate to carry out tasks as approved by the said Council.

Subsequently, by letter dated July 31st 2014 addressed to the President of the EBID, the ECOWAS Commission approved the carrying out of a diligence mission for and on behalf of its member states.

GTG Partners have been appointed to carry this due diligence mission on the proposed ATI-ECOWAS partnership, in July 2014.
Actual services and results delivered :  

As part of this due diligence mission, GTG Partners undertook the followings:

  • (i) A review of the institutional and legal framework of the proposed ATI-ECOWAS partnership, a review the financial and economic impacts as well as making recommendations as to the operational aspects of the partnership.
  • (ii) Drafting of a comprehensive due diligence report submitted to the ECOWAS Project implementation Committee;
  • (iii) Attending follow-up meetings pertaining to the project.