Cameroon: Promoting Investments - African Trade Insurance Agency Bill in Parliament

The advantages of Cameroon's accession to the agreement establishing the Agency are clearly stated in the bill.

The bill to authorise the President of the Republic to proceed with Cameroon's accession to the Agreement Establishing the African Trade Insurance Agency, signed on 18 May 2000 is under scrutiny in the National Assembly. The Agency headquartered in Nairobi, Kenya, is a financial body offering many advantages and services, to both the public and private sectors. Government explains the advantages to include the coverage through sovereign guarantee for the funding of major projects, protection against political and financial risks, reduction of transaction costs and facilitation of obtaining funding. The Agency operates through insurance, coinsurance and reinsurance mechanisms and has two specificities that are: attracting more investments for Member States, and contributing towards increasing the level of trade on the African continent. According to government in the explanatory statement to the bill, the Agency's international rating enables it to set softer loan terms based on coverage against non-payment for operations under private and public regional, national and international projects. Specifically, Cameroon's accession to the Agreement will help to boost trade and attract investment by reducing transactions cost. This will be by allowing exporters, importers and investors to have easier access to credit insurance, political risk insurance, coverage against insolvency and protection of foreign direct investment. Cameroon expressed the interest in becoming party to the Agreement since 2015, and will be recognised as a full-fledged member following the accession procedure.

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