Afreximbank launches AFREXInsure to provide tailored specialty insurance solutions to support trade and manage risks in Africa.
African Export-Import Bank (Afreximbank) has unveiled AFREXInsure, its wholly owned insurance management services subsidiary, aimed at enhancing risk management and promoting trade within Africa. AFREXInsure will offer specialty insurance solutions customized for the African market, catering to sectors crucial for trade and investment growth. This strategic initiative seeks to bolster Africa’s economic resilience and foster intra-African trade, while reducing reliance on external partners.
Afreximbank – Providing insurance solutions through AFREXInsure
The African Export-Import Bank (Afreximbank) has announced the launch of its dedicated insurance management services subsidiary, AFREXInsure, at a ceremony held during the company’s 30th Anniversary Annual Meetings in Accra. The move is designed to provide comprehensive insurance solutions and risk management services that cater specifically to the needs of Africa’s trade and commerce sector.
AFREXInsure, established in 2021, aims to serve as a single-entry point for specialty insurance needs, addressing the challenges faced by businesses involved in trade and trade-related investments across Africa. By leveraging its in-depth knowledge of the African market and continent-wide presence, AFREXInsure appears to be well-positioned to offer tailor-made specialty insurance solutions in critical sectors such as cargo handling, construction, operations, and energy.
Boosting Africa’s economic resilience
Speaking at the launch event, Kanayo Awani, Executive Vice President, Intra-African Trade Bank, representing Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasized the significance of AFREXInsure in facilitating specialty risk insurance. Awani underlined how the initiative aims to support businesses in Afreximbank member countries, alleviating the reliance on external partners to strengthen Africa’s economic resilience and drive its development.
Awani highlighted the importance of insurance in mitigating risks associated with transactions and investments, enabling businesses engaged in intra-African trade to pursue their strategic objectives effectively, saying, “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.”
Low insurance penetration
Insurance penetration in Africa is relatively low compared to other regions, and AFREXInsure aims to address this gap by strengthening efforts to provide insurance solutions tailored to the African context. Furthermore, AFREXInsure’s initiatives will help retain insurance premiums within Africa, facilitating reinvestment and contributing to the continent’s overall trade and economic development.
Afreximbank’s third Intra-African Trade Fair will take place in Cairo this November.