Afreximbank launches insurance subsidiary to support intra-African trade

The African Export-Import Bank (Afreximbank) has launched AfrexInsure, a wholly-owned insurance management services subsidiary.

The bank said AfrexInsure would provide a single-entry point for all specialty insurance needs to assist in optimally managing related risks for the trade and commerce sector in Africa.

“Established in 2021, AfrexInsure is set up to offer specialty insurance solutions for trade and trade-related investments across Africa with access to quality, best-in-breed speciality insurance that is tailor-made for Africa,” the bank said in a statement on Sunday.

“With credible knowledge of Africa, AfrexInsure will leverage 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 intercontinentally.”

Speaking on the subsidiary, Benedict Oramah, president and chairman of the board of directors at Afreximbank, said the new company would facilitate the insurance of specialty risks.

Oramah was represented by Kanayo Awani, executive vice-president of Afreximbank’s Intra-African Trade.

He said by reducing the risk of transactions or investments, insurance could help drive forward business strategy for those engaged in intra-African trade.

The board chair added that the new subsidiary would 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”.

“It would also enable global partners to further their commercial interests and ambitions in Africa. AfrexInsure will, therefore, strengthen efforts to address this need in Africa and in partner states in the Caribbean,” Oramah said.

“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.”