Afreximbank launches insurance company to address trade risks in Africa
The African Export-Import Bank (Afreximbank) has launched its wholly owned insurance management services subsidiary, AFREXInsure, to assist in optimally managing related risks for the trade and commerce sector in Africa.
Established in 2021, AFREXInsure, a single-entry point for all specialty insurance needs would offer insurance solutions for trade and related investments, with access to qualitythat are tailor-made for Africa.
The new entity, which would be based in Mauritius, would provide solutions in cargo handling, construction, operations and energy sectors, which the Bank recognises as critical for the growth and establishment of trade and investment intercontinentally.
Speaking at the launch, Kanayo Awani, Executive Vice President, Intra-African Trade Bank, said the company would facilitate the insurance of specialty risks to support businesses in Afreximbank member countries.
Ms Awani who spoke on behalf of Professor Benedict Oramah, President of Afreximbank, aslso said AFREXInsure would mitigate the problem of Africa having to rely on external partners to architect the continent’s economic resilience and development.
“By reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-African trade and enable global partners to further their commercial interests and ambitions in Africa,” she said.
She indicated that insurance penetration was relatively low in Africa compared to other regions, therefore, AFREXInsure would strengthen efforts to address such need in Africa and in partner states in the Caribbean.
“It will also help retain insurance premiums in Africa and assist in ploughing back Africa’s investments into the continent for the enhancement of trade and economic development for the prosperity of the continent,” she said.
Jonas Muahosho, Chief Executive Officer (CEO), AfrexInsure, said “The solution we offer to our clients and Africa meet the needs of those who are funding trade on the continent and those who borrow from them.”
“These solutions we provide are not designed only for whoever entity that faces these issues in these areas,” Mr Muahosho who is also a Board member of AfrexInsure noted.