Ethiopia / NEXI Provides Reinsurance for Telecommunications Project in the First
Collaborative Program with the African Trade Insurance Agency (ATI)
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has partnered with the African Trade Insurance Agency (ATI) to provide reinsurance capacity in support of an investment in a telecommunication project (the Project) undertaken in the Federal Democratic Republic of Ethiopia (Ethiopia), by Sumitomo Corporation (Sumitomo), Vodafone Group Plc (Vodafone), a leading British telecommunications provider, and other companies.
During TICAD7 held in 2019, NEXI signed a Memorandum of Understanding with ATI and has been facilitating the development of Japanese businesses into the African region through various activities, in partnership with ATI. Such activities include hosting trade exhibitions and setting up Japan Desk in ATI1 targeting Japanese companies intending to expand their businesses in Africa, which led to this first collaborative project with ATI.
In the Project, Sumitomo will engage in telecommunications business in Ethiopia via joint venture company established collectively with Vodafone, Safaricom Plc in the Republic of Kenya and Vodacom Group Ltd in the Republic of South Africa, both a telecom operator of Vodafone Group, and British International Investment2, a development finance institution of UK. NEXIβs reinsurance will cover the investment made by Sumitomo.
The Project is expected to facilitate Japanese companies in providing high-quality services in the telecommunications infrastructure sector of Ethiopia. It is in line with the detailed policies in digital fields outlined as Investment in Quality ICT Infrastructure, set out in the Infrastructure System Overseas Promotion Strategy 2025 advanced by the Japanese government. The Project will also contribute to the sustainable growth of Ethiopia, aligning with the endorsement made by the government of Japan at TICAD7 held in 2019, to drive investments for quality infrastructure including enhancement and development of telecommunications network.
With anticipation for TICAD8 forthcoming this year, and as a governmental financial institution of Japan, NEXI will continue to actively promote the expansion of Japanese companies and businesses into the African market.
Contact: Overseas Investment Insurance Underwriting Group II, Underwriting Department
- 1 https://www.nexi.go.jp/en/topics/newsrelease/2020110202.html
- 2 Formerly known as CDC Group Plc. Renamed as British International Investment on April 4, 2022.