By Vivian Ihechu
June 18, 2023 The African Export Import Bank (AFREXIM), a leading pan-African multilateral financial institution, says its new subsidiary, the Afrexim Insurance Management Company- AFREXInsure, will facilitate the development of specialty insurance in Africa.
The bank made the assertion during the launch of Afrexinsurance in Accra, Ghana, on Sunday, during the 30th Annual Meetings of Afreximbank.
AfrexInsure, is an insurance management services company which offers specialty insurance solutions for trade and trade-related investments across Africa, to have its headquarters in Mauritius.
Mrs Kanayo Awani, Afreximbank Executive Vice-President, Intra-African Trade Bank (INAT), said the establishment of Afrexim Insurance Management Company (Afrexinsure) was another milestone in the history of the African Export Import Bank.
“The launch of the Afreximbank’s wholly owned subsidiary – (Afrexinsure) as part of the African Export Import Bank (AFREXIM) Group structure, is a demonstration of our unrelenting commitment to provide more financial and risk management solutions to address the persistent trade finance and trade-related investment gap in the continent.
“AFREXInsure, will facilitate the development of specialty insurance in Africa.
“As a key management tool for trade, enabling businesses to pursue ambitious business strategies by lowering risks, 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-Africa trade as well as enable global partners to further their commercial interests and ambitions in Africa.
“For instance, infrastructure deficits continue to hamper African trade growth. Air transportation remains prohibitively expensive and rail transport is often not an option due to the absence of rail infrastructure.
“Road and Marine transportation, which dominate African trade are often not suitable for many products due to the relatively short perishable live shelf, and in many instances, a shortage of cross border road systems and transportation routes remain a challenge.
“In the context of US$120 billion and US$100 billion annual trade and infrastructure financing gap respectively, adding insurance to the Groups portfolio will help ensure the availability of financing.’’
She said it would also help de-risk large projects and crowd in the investment required to develop the infrastructure networks necessary for development of trade and commerce across the continent.’’
Awani, also Acting Executive Vice President, Business Development and Corporate Banking, Afreximbank, said the introduction of insurance offerings would complement other initiatives of the bank and advance the implementation of the AfCTA.
“It will ensure a comprehensive offering of trade solutions that are fully aligned with African development ambitions and ensure that insurance premiums and African capital are retained in the continent.
“Together with the entities within the Afreximbank Group (the Bank, FEDA, PAPSS, MANSA, ACOF, AMCE,AQAC and APPF), Afrexinsure is aligned with our corporate strategy to provide a comprehensive suite of trade solutions for our clients and partners.
“AfrexInsure is rolling out its own initiatives and products as it builds on the foundation of the Bank’s vision to transform African trade,’’ she said.
Mr K.C Li, the Chairman of the AfrexInsure, said the company was “the latest financial weapon of Africa.
He commended the initiative and urged collaboration, support and committed engagement for the “transformation of Africa we look to.
“Together, we will be able to build Africa’s prosperity and trade,’’ he said.
Mr Jonas Mushosho, Founding CEO and Board Member of Afrexinsure, highlighted that the insurance manager will cover some areas in the trade process including Marine Cargo, Construction, Operations and Energy.
He said that the establishment of the new insurance firm was a significant step forward in increasing insurance penetration in the continent. “It meets the needs of those funding trade in Africa,” he said.
Mr Kofi Addo, Director, Guarantees & Specialised Finance, Afreximbank and Board Member of AfrexInsure, said that the whole concept of AfrexInsure fit into the goals of Afreximbank.
He also called for partnership and support to ensure the success of the entity and Africa as a whole.
