AFRICA – FINANCING : KfW takes a stake in ATIDI, boosting German investment across the continent

This marks a new milestone in the deepening economic ties between Europe and Africa. In Nairobi, the German development bank KfW, acting on behalf of the Federal Republic of Germany, formalized its equity participation in ATIDI (African Trade and Investment Development Insurance). This transaction makes the German institution the 13th shareholder of the pan-African mechanism specializing in risk coverage for trade and investment across the continent.

The deal was sealed through the signing of a subscription agreement during a meeting between ATIDI’s senior management and Germany’s Federal Minister for Economic Cooperation and Development, Reem Alabali Radovan. It reflects Berlin’s stated ambition to strengthen its economic partnership with Africa, at a time when securing international investments has become increasingly critical.

KfW injected $32 million to acquire Category D2 shares, a status reserved for export credit agencies and non-African public entities. Of this amount, $18.4 million comes from the German Federal Ministry for Economic Cooperation and Development (BMZ), while the remaining $13.6 million is financed directly by KfW. This position grants the bank access to ATIDI’s governance bodies, with an enhanced role in strategic decision-making.

Beyond this equity participation, cooperation between the two institutions is longstanding. KfW has already mobilized over $100 million to support the accession of several African countries to ATIDI, thereby strengthening its capital base and operational capacity. The overarching objective is to mitigate perceived risks for private investors and stimulate capital flows into African markets, often constrained by political instability and economic uncertainty.

Established in 1948, KfW is one of the German government’s main financial arms for development cooperation. It operates in key sectors such as infrastructure, renewable energy, sustainable development, and SME financing in emerging economies. Through this partnership, the German institution aims to generate up to $500 million in additional trade and investment between German companies and African economies.

For its part, ATIDI, founded in 2001 by several African states, has established itself as a leading risk mitigation institution on the continent. It has facilitated more than $93 billion in trade and investment transactions. Rated A/Stable by Standard & Poor’s and A2/Stable by Moody’s, it enjoys strong financial credibility, enhancing its attractiveness to international investors.

The organization works closely with major multilateral institutions, including the World Bank, the European Investment Bank (EIB), the African Union, and COMESA. It provides credit insurance, investment insurance, and political risk coverage, helping secure projects in environments often considered high-risk.

For both partners, this new step goes beyond a purely financial transaction. It aims to build a strategic bridge between European expertise in development finance and ATIDI’s deep understanding of African risk dynamics. The ambition is to facilitate private capital mobilization into key sectors, strengthen trade corridors, and support the continent’s long-term economic transformation.

According to ATIDI’s Chief Executive Officer, Manuel Moses, KfW’s entry is both a recognition of the institution’s model and an opportunity to expand investment prospects. For KfW, represented by Christiane Laibach, it represents a natural extension of an already solid partnership, designed to enhance Africa’s attractiveness to European and German investors.

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Tressy CHOUENTE

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