Afreximbank launches insurance services to help limit risk in trading

June 20, 2023 in Business, Financial Services by Editor

Awani said the new service will help retain insurance premiums in Africa and assist in ploughing back Africa’s investments into the continent for the enhancement of trade and economic development for the prosperity of the continent.

The African Export-Import Bank (Afreximbank) has launched its wholly owned insurance management services subsidiary, AFREXInsure, intent on providing a single-entry point for all specialty insurance needs to assist in optimally managing related risks for the trade and commerce sector across Africa.

Speaking on the sidelines of Afreximbank’s 30^th Anniversary Annual Meetings in Accra, Kanayo Awani, Executive Vice President, Intra-African Trade Bank said,“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.”

Established in 2021, AFREXInsure was set up to offer specialty insurance solutions for trade and trade-related investments across Africa with access to quality, best-in-breed specialty insurance that are tailor-made for Africa.

AFREXInsure will leverage on its risk expertise by using its continent-wide presence and deep understanding of the African market to provide solutions around cargo handling, construction, operations and energy – sectors critical for the growth and establishment of trade and investment inter-continentally.

Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.

A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.

The Bank disbursed more than US$86 billion between 2016 and 2022. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB).

Awani said insurance penetration is relatively low in Africa compared to other regions. She said AFREXInsure will, therefore, strengthen efforts to address this need in Africa and in partner states in the Caribbean. It will also help retain insurance premiums in Africa and assist in ploughing back Africa’s investments into the continent for the enhancement of trade and economic development for the prosperity of the continent.

The launch also witnessed the unveiling of AFREXInsure’s logo and brand identity under the slogan ‘Insurance Optimised’.