The Corporation is using the amount as an equity investment in Activa, an insurance group operating in Cameroon, Ghana, and other countries in the region, to help increase access to insurance for farmers, smaller businesses, and lower-income individuals.
IFC said its equity investment will help Activa expand into new markets in West and Central Africa, where few are able to access or afford insurance products.
With IFC’s backing, officials say Activa plans to offer innovative products, such as weather risk insurance for farmers, micro-insurance for lower income beneficiaries, and mobile insurance, where the insurance product is distributed via network operators.
“Through our partnership with IFC, we are extremely well positioned to take advantage of the many growth opportunities in African markets with very low insurance penetration through the development of products designed to cover low-income population and small businesses and the use of innovative distribution channels,” said Richard Lowé, CEO of Activa Group.
According to Yolande Duhem, IFC Director for West and Central Africa, a key focus of IFC’s financial services strategy for sub-Saharan Africa is to support regional insurers who aim to achieve mass market coverage and expand their operations in other countries.
By Ekow Quandzie