Afreximbank launches new insurance firm
African Export-Import Bank (Afreximbank) has launched AfrexInsure, a management services company which offers specialty insurance solutions for trade and trade-related Investments across Africa.
The launch took place in Accra, Ghana today at the start of the bank’s 30th Annual Meetings and 30th Anniversary celebrations.
The launch offers hope to Malawian firms in cargo, construction, energy, trade and operations which stand to benefit from the new insurance firm due to its low premiums.
AfrexInsure chief executive officer, Jonas Mushosho said the unveiling of the new entity is proof of the bank’s unrelenting commitment to provide more financial and risk management solutions to address the persistent trade finance and trade-related investment gap on the continent.
He said: “As a key management tool for trade, enabling businesses to persue ambitious business strategies by lowering risk, tailored insurance and reinsurance products for Africa will have significance influence in boosting African trade.”
Mushosho explained that the ambition of creating an integrated African market under the African Continental Free Trade Area (AfCTA) will help dismantle a number of barriers to intra-Africa trade, including tariff and non-tariff barriers.
” However, a continued binding constraint limiting the expansion of African trade is the continued reliance on external partners and inadequacies of the continental financial architecture to drive economic resilience and development.
” A robust African financial services industry remains imperative to ensure a buoyant economic ecosystem that will increasingly stimulate intra-and extra- African trade and growth,” he explained.
Mushosho said the new firm will be a focal point for specialty insurance solutions and ensuring that the right-fit insurance solutions are secured.
Afreximbank board chairperson K.C Li said AfrexInsure will offer vital insurance solutions for trade and trade-related investments across Africa, including access to quality, best-in-breed specialty insurance and tailor-made specialty insurance.
He said: “AfrexInsure will also offer African knowledge and risk expertise by leveraging its presence across the African continent and deep understanding of the African market.”
Afreximbank hopes that by reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-Africa trade as well as enable global partners to further their commercial interests and ambitions in Africa.
Both Mushosho and Li back the idea of the new entity, which was registered in Mauritius, saying it was necessary to come up with a pan-African insurance company that will work with other reinsurance firms on the continent because infrastructure deficits continue to hamper Africa’s trade growth.
“Air transport remains prohibitively expensive, and rail transport is often not an option due to the absence of rail infrastructure. Road and maritime transportation which dominates African trade is often not suitable for many products due to their relatively perishable short lives;hence, insurance comes in handy, ” said Mushosho.
He adds that all entities and businesses involved in supporting trade and trade-related Investments accross the African continent are eligible.
Meanwhile, Afreximbank president and board chairperson Benedict Oramah and President Lazarus Chakwera met on Saturday.
During the meeting Oramah expressed his gratitude to Chakwera for honouring the bank’s invitation to participate in the 30th Afreximbank Annual Meetings.
“This is a great honour to us as a bank,” he said.
Chakwera and Oramah are scheduled to meet again to discuss among others, funding opportunities for several projects the government is undertaking and financing for mega farms programme.
Chakwera is expected to be part of a panel discussion of Heads of State and Government on Monday.
The annual meetings are being held under the theme “Delivering the Vision: The Benefits of Strong Continental Financial Institutions.”
