Don’t look away…ever

Sadly, the negatives have included continuing political violence, such as the terrorist attacks by Boko Haram and al-Shabaab, as well as the deadliest outbreak ever of the Ebola virus. It has been one of those years where Africa seems to have been in the news for all the wrong reasons. It has come out bottom of the heap in terms of corruption risk in the latest Transparency International report, while the OECD points to bribery and corruption issues rife in the continent. Add to that court cases in the UK involving corruption in African countries, and newsfeeds concentrating on the continuing Ebola outbreak and political violence.hideThe so-called CNN effect may be having a disproportionate effect on investor appetite. As one Standard & Poor’s analyst says: “Perhaps one of the biggest risks to rated sovereigns currently posed by Ebola is that business travellers, tourists and freight companies from outside Africa may not distinguish between affected and unaffected countries on the continent, but rather choose to shun all of them, leading to a drop in trade and investment.” A dire warning indeed. However, this is but one side of the picture. On the positive side, the Ebola crisis appears to be weakening in Liberia and has not spread to any more west African states. For those who have operated in Africa for a long time, it is very much business as usual. As William Pollen, Programme Director for Invest in Africa, explained, those who have been in business in Africa know profits may dip on a temporary basis, but the overall reward remains. This is illustrated by the actions of some of the world’s biggest names in chocolate (Nestlé, Mars and Hershey), which have got together and given some $600,000 to help fight Ebola. These companies have a vested interest in supporting the west African countries that produce so much of the world’s cocoa but they still had to make the decision that the investment will be worthwhile. Yet more positives come from the risk management community itself. The Institute of Risk Management South Africa (IRMSA) has just seen the first test students through its new exam process. No doubt we will be hearing a lot more about these new qualifications in 2015 as they roll out to the market as a whole. IRMSA has just celebrated the past year with its annual dinner and awards, an event that was well supported by the local market. Further north, in Kenya, Commercial Risk Africa held its first event on the continent—a day of presentations and workshops, which were well received by the risk managers in Nairobi. The day revealed a lot more behind the thinking of the local market and it is clear that risk managers in Kenya would like to have their own risk management association and to have qualifications that not only give them a sense of achievement but place them correctly in a global context. I am sure we will hear a lot more from the Kenyan risk management community in 2015. We too will be back again in 2015. We have an exciting year ahead, with more events planned. So all that remains for me to do is to wish you all a happy and prosperous new year.

Don’t look away…ever

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

US insurers expected to increase casualty pricing as social inflation rises

Consultancy S-RM expands cybersecurity practice to APAC

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

US insurers expected to increase casualty pricing as social inflation rises

Consultancy S-RM expands cybersecurity practice to APAC

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

US insurers expected to increase casualty pricing as social inflation rises

Consultancy S-RM expands cybersecurity practice to APAC

Related Articles