The African Trade Insurance Agency (ATI) and UAP Uganda will jointly offer insurance cover against losses caused by political unrest.

The product, known as the Political Violence, Terrorism and Sabotage cover offers protection to clients’ property up to the tune of $5 million, and includes risks against rebellion damage in transit, coup d’états and ordinary business interruptions.

The need for the product is driven by political violence witnessed in 2009 in Uganda where businesses suffered significant losses from charged mobs.

The political risk insurance cover is also meant to spur higher lending in commercial banks that slow down credit activities during election cycles, for fear of losing valuable collateral.

It is also expected to ease nervousness among foreign investors in the run up to elections, as they affect foreign direct investment flows.

Member countries in the ATI structure include Uganda, Kenya, Tanzania, Rwanda, and Burundi alongside other members of the Common Market of Eastern and Southern Africa region.

Source: The East African