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Regional Trade Facilitation Project for Africa (RTFP)

Regional Trade Facilitation Project for Africa (RTFP). A COMESA-WORLD BANK PROJECT. Regional Trade Facilitation Project for Africa (RTFP). Provides political risk insurance for cross- border trade Administered by the African Trade Insurance Agency (ATI).

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Regional Trade Facilitation Project for Africa (RTFP)

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  1. Regional Trade Facilitation Project for Africa (RTFP) A COMESA-WORLD BANK PROJECT

  2. Regional Trade Facilitation Project for Africa (RTFP) • Provides political risk insurance for cross- border trade • Administered by the African Trade Insurance Agency (ATI)

  3. Regional Trade Facilitation Project for Africa • Membership in ATI and participation in the project is: OPEN TO ALL AFRICAN COUNTRIES

  4. Regional Trade Facilitation Project for Africa • Which Government Performance Risks are covered? • expropriation • interference in the management or operations of an enterprise causing non payment • imposition of exchange controls • foreign exchange shortages • retrospective imposition of import or export taxes • confiscation of goods • withdrawal of import or export licenses • transit risk

  5. Regional Trade Facilitation Project for Africa • Which non-Government Performance Risks are covered? • War • Civil disturbance • Civil commotion • Embargoes

  6. Regional Trade Facilitation Project for Africa • Who is covered? • Foreigners engaged in trade transactions in a participating country, against political risks in that country • Exporters of goods and services in participating countries, against political risks in the buyers’ country

  7. Regional Trade Facilitation Project for Africa • What types of transactions are covered? ANY TYPE OF TRANSACTION THAT LEADS TO A PRODUCTIVE ACTIVITY, other than equity investment

  8. Regional Trade Facilitation Project for Africa • How is the project structured? • Participating countries borrow from the World Bank • Control of funds ceded to ATI • ATI operates in partnership with private insurers • Insurance policies are issued by the private insurers • Private insurers are given exclusive access to WB funds • Private insurers leverage WB funds • Premium sharing formula recognises “first loss” arrangements

  9. Regional Trade Facilitation Project for Africa • What are the project’s key design aspects? • Single country schemes • “First come-first served” principle • Uniform premiums • Strong and standardized disciplines • Appointment of Ombudsman

  10. Regional Trade Facilitation Project for Africa • What are the benefits of a regional approach? THE MORE COUNTRIES PARTICIPATE, THE MORE POWERFUL AND EFFECTIVE THE PROJECT WILL BE

  11. Regional Trade Facilitation Project for Africa • What is the African Trade Insurance Agency? NEW MULTILATERAL AGENCY UNDER SECTION 102 OF THE UN CHARTER

  12. Regional Trade Facilitation Project for Africa • Catalyzing trade credit insurance in Africa MAJOR CREDIT INSURERS HAVE EXPRESSED INTEREST IN ENTERING THE AFRICAN MARKET IF POLITICAL RISK COVER IS AVAILABLE

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