Abuja - Economic Community of West African States (ECOWAS) Ministers of Finance and Economic Planning have recommended the establishment of Investment Guarantee Agency as part of efforts to mitigate investors’ fears and strengthen government commitment to improving the business environment through policy reforms.
The ministers adopted the recent report by regional experts recommending proposing the setting up of the agency, also known as the ECOWAS Political Risk Insurance Agency.
The ministers at their one-day meeting agreed with the experts' report on the agency’s Feasibility Study, noting that partnering with the African Trade Insurance (ATI) and expanding its coverage to ECOWAS would be a better option than setting up a new independent insurance institution for the region.
“In view of the problem of funding facing many African countries and the need for ECOWAS Member States to attract more Direct Fund Investment (DFI), the minister believe that the ATI provides a window of opportunity for the Community to access finance,” the ministers stated.
The establishment of the agency is within the framework of the revised ECOWAS Treaty, which provides that member states pursue and create an enabling environment for private sector operation, and also to introduce a credit and guarantee fund mechanism to facilitate the flow of development capital into the region.
- CAJ News