Afreximbank, the export-import bank has introduced its wholly-owned insurance management services subsidiary, AFREXInsure.
The news comes just days after Afreximbank, which is headquartered in Cairo, announced that it also aims to pump US$20 billion to support intra-African trade, in a public statement by Chairperson of the bank, Benedict Orama.
According to reports, AFREXInsure aims to serve as a centralised hub for all specialty insurance requirements, offering optimal risk management solutions for the trade and commerce sector across Africa. With its establishment in 2021, the subsidiary is well-positioned to provide tailored specialty insurance solutions for trade and trade-related investments throughout the continent.
One of AFREXInsure’s key strengths lies in its in-depth understanding of Africa and its risk expertise. Leveraging its presence across the continent, AFREXInsure intends to deliver quality specialty insurance solutions specifically designed for Africa’s unique challenges in cargo handling, construction, operations, and energy sectors. By doing so, the subsidiary aims to foster the growth and establishment of trade and investment at an intercontinental level.
During the launch, Kanayo Awani, Executive Vice President of Intra-African Trade Bank, explained that AFREXInsure’s establishment is a response to the need for Africa to reduce reliance on external partners in building the continent’s economic resilience and development. By mitigating transaction and investment risks, insurance can facilitate business strategies for intra-African traders while also enabling global partners to further their commercial interests in Africa.
He said; “AFREXInsure was established to facilitate the insurance of specialty risks in order to support businesses in Afreximbank member countries to mitigate the problem of Africa having to rely on external partners to architect the continent’s economic resilience and development. By reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-African trade and enable global partners to further their commercial interests and ambitions in Africa.”
Africa currently experiences lower insurance penetration compared to other regions. AFREXInsure seeks to address this gap by strengthening efforts to meet the insurance needs in Africa and its partner states in the Caribbean. Additionally, the subsidiary’s presence will help retain insurance premiums within Africa and reinvest them into the continent, fostering trade, economic development, and prosperity.
The launch of AFREXInsure also unveiled the subsidiary’s logo and brand identity, encapsulated by the slogan “Insurance Optimised.”
