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An insurance company focused on trade and trade-related investments across Africa has been unveiled in Accra, Ghana, to offer a single entry point for all insurance needs.
AfrexInsure, a subsidiary of African Export-Import Bank (Afreximbank) will offer focal point for speciality insurance and ensure right fit insurance solutions are secured.
In launching the AfrixInsure on Sunday, Afreximbank Executive Vice President for Intra-African Trade Bank, Kanayo Awani, said this demonstrates the group’s commitment to providing more financial risk management solutions to address the persistent trade finance and trade-related investment gap on the continent.
Awani stated the need to create a more roburst economy by diversifying Africa’s export baskets as well as export markets, with a greater focus on intra-African trade.
She acknowledged that this had become even more urgent in the wake of the Covid-19 pandemic and Russian-Ukraine crisis.
“The ambition of creating an integrated African market under the African Continental Free Trade Area (AfCFTA) will help dismantle a number of barriers in intra-africa trade, such as tariffs and non-tariff barriers,” she said.
Awani, however, noted that a continued binding constraint limiting the expansion of African trade was the reliance on external partners and inadequacies of the continental financial architecture to drive economic resilience and development.
She further said a robust financial services industry remained imperative to ensure buoyant economic ecosystem that will increasingly stimulate intra and extra-African trade and growth.
“As a key management tool for trade, enabling businesses to pursue ambitious business strategies by lowering risk, tailored insurance and reinsurance products for Africa will have a significant influence on boosting African trade.
“By reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-African trade as well as enable global partners to further their commercial interest and ambitions in Africa,” Awani said this on the sidelines of Afreximbank’s 30th Anniversary Annual Meetings.
She indicated that infrastructure deficit, for example, continue to hamper africa growth.
In the context of US$120 billion and US$100 billion annual trade and infrastructure financing gap respectively, Awani said adding insurance to the groups portfolio will help ensure the availability of financing.
This, she said, will help de-risk large projects and crowd in the investment required to develop the infrastructure network necessary for development of trade and commerce across the continent.
Awani was speaking on behalf of Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah.
Speaking earlier, Chief Executive Officer and Board Member of AfrexInsure, Jonas Mushosho, said the insurance products are designed to meet the needs of those who are funding trade on the continent and those who borrow from them.
Mushosho explained that the funders and borrowers require a bankable insurance policy as security, stating that AfrexInsure will offer all the insurance needs to enhance trade and trade related investments on the continent.
The insurance solutions will for example cover cargo, construction, operations, energy, among others.
Established in 2021, AfrexInsure is set up to offer specialty insurance solutions for trade and trade-related investments across Africa with access to quality, best-in-breed specialty insurance that are tailor-made for Africa.
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