Call to action to support African development

He said: “Since the beginning of the 21st century, the African economy has been growing in leaps and bounds. Net foreign direct investment in the continent in 2013 was $43bn. Around the same time, insurance regulators have begun to modify laws governing insurance to create stronger and better managed companies, operating in a well regulated environment. Thus, today’s insurance industry is prepared to benefit from the insurances of the many massive infrastructure projects and oil and gas discoveries dotting Africa.” Mr Karekezi said the development of insurance business in Africa requires both individual and collective actions from all stakeholders, irrespective of the sector of the industry they belong to. He explained Africa Re, by virtue of its establishment agreement, is charged with the responsibility of fostering development of the insurance and reinsurance industry in Africa, promoting growth of national, regional and sub-regional underwriting and retent-ion capacities and supporting African economic development.hide“I am pleased to say that Africa Re, through its diverse footprint across the continent, has been able—and will continue—to fulfil these responsibilities,” he said. “However, we must add that the African industry needs the support of non-African companies (insurers and others), which will also enrich the insurance climate with their capital, knowhow, experience and innovations. To attract more foreign investors, Africa must continue to improve its business environment and build a more inclusive insurance industry.” Mr Karekezi stressed: “The business of insurance offers many unique value propositions to discerning investors, either directly or indirectly, in the quest for superior yields and overall accelerated economic growth. “Africa as a continent is currently experiencing impressive growth that indicates room for growth in its insurance sector off its currently low base (other than South Africa and Mauritius).” The Africa Re chief said that even the regulatory and macroeconomic landscape is improving to facilitate trade and investment and, though opportunities for insurance development and growth abound in Africa, only the innovative, creative, forward-looking and customer-centric organisations would survive the impending competition. “It will no longer be business as usual,” he suggested. “In the past, African players seem to have taken a back seat in the many new investment initiatives. To date, cross-border investment in insurance is on the rise and should take the front seat. I can only call for a rethink and, indeed, positive steps to sustain and deepen this trend. I count on you all to rise up to the challenge and tap into the many opportunities opening up to discerning investors across the continent.” Mr Karekezi stressed this call for action, in a challenging and exciting Africa, should not be driven only by financial returns but more importantly by the call of duty to lift millions of people out of poverty. “This is what Africa Re has been established for and shall continue to pursue,” he said.

Call to action to support African development

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