Interesting times, we live in

What does that have to do with Africa? Everything, it seems. From the Tanzanian decision it could no longer support a trade pact between the East African Community and the European Union, to fears that investors might just sit on their cash and delay projects across Africa. It has also thrown up some other interesting dynamics. In the immediate aftermath, the value of the pound dropped against the US dollar, the euro and a number of African currencies. It makes a change for a major global currency to be going through the same experience as many emerging market economies of late. The Brexit vote has also shown that the unexpected is perfectly capable of happening, even in this increasingly interconnected and informed world. And it has also taken people’s minds off some of the challenges they are facing at home – and there are still plenty of those. hide Take Nigeria: the Skye Bank developments this month have highlighted the need for solid risk management and good governance – starting at the top of organisations. It is a warning to all businesses that the authorities will take action when required. Meanwhile, we hear this month from the mining sector, another industry facing challenges. For this sector, it is not an African issue but a global one, although the future of commodities affects so many African economies very directly. Again, good governance and solid risk management is seen as a way to survive the tough times. The past month has also seen plenty of insurance company news. Zurich has sold its African operations, just as AM Best and Swiss Re have produced their annual African insurance market reports, which in broad terms conclude that life is tough right now but opportunities abound. Risk management is fast becoming a pillar in the arsenal of insurance regulators across Africa, as they look to drive up standards to meet international requirements. However, as Commercial Risk Africa discovered at a recent roundtable in London, there is a delicate balance to be struck between good risk management and the smothering of opportunity. The roundtable gave a voice to risk managers in the UK with an interest in Africa. They spoke of the challenges of “selling” the concept of doing business in Africa, saying perception of the associated risks are often wrong but it is hard to overcome them. They also discussed the challenges of turning the “supertankers” that are large corporations, when decisions need to be made. However, they feel it can be done with sound risk management principles and this is something they are keen to share with African risk management colleagues. Closer collaboration is something that both European and US risk management associations are keen to develop. Hopefully we will hear more of that in the future and we will have a fuller report from that roundtable next month. In the meantime, we are headed towards our events in Africa this year – Windhoek, Nairobi and Lagos. We have an exciting line-up of speakers developing and I hope to see many of you at those three days of events. Good news too that we plan to repeat our event in London again in early 2017, a chance to reinforce those growing links and to show Africa is far from the backward continent that some still presume it to be – often without any first-hand experience.

Interesting times, we live in

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