Political risk reinsurance facility set up for green energy projects

Munich Reinsurance Co., Kenya-based African Trade Insurance Agency Ltd. and Luxembourg-based European Investment Bank have set up a political risk reinsurance facility for green energy projects in Africa, Renews reported. The Africa Energy Guarantee Facility will protect private investors against non-payment of power purchase agreements, expropriation and breach of contract, war and civil unrest, among other risks. Joachim Wenning, chief executive of Munich Re, said that the facility is a blueprint for risk-sharing between insurers, reinsurers and international financial institutions.

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