Afrexim Bank Seeks To Boost  Intra-Africa Trade Through AFREXInsure

So many investors in Africa have over the years met innumerable challenges when it comes to insuring their imports and exports, because they often have to rely on foreign companies to get insurance for their goods in transit.

However, through its newly introduced insurance subsidiary AFREXInsure, Afrexim Bank (Africa Import and Export Bank) seeks to put in place a lasting solution to the challenges faced by African exporters and importers.

AFREXInsure, which is an insurance subsidiary fully owned and managed by Afrexim Bank, was launched recently during the celebration of Afreximbank’s 30th Anniversary, at an event that was held in Accra, Ghana.

Kanayo Awani, the Executive Vice President, Intra-African Trade Bank, who spoke on behalf of Prof. Benedict Oramah, the President and Chairman of the Board of Directors of Afrexim Bank, said that;

“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.”

He added that; “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.”

He however noted that although insurance saturation in Africa is still somewhat on a low scale when compared to other regions, AFREXInsure comes in to change this perception, and to buttress efforts to address the need to create awareness throughout the continent and among partner states in the Caribbean.

AFREXInsure also aims at reducing profit repatriation through retaining insurance premiums in Africa, which will enable investors to reinvest the money in Africa, which  will contribute towards boosting trade and economic development throughout Africa.

We have since learnt that AFREXInsure, which was set up in 2021, operates with the main objective of offering specialty insurance solutions for trade and trade-related investments throughout Africa.

The subsidiary aims at boosting trade within the continent through availing traders with an opportunity to access quality and best-in-breed specialty insurance, which is tailor-made for Africa and the clients’ needs.

Therefore, by launching AFREXInsure, Afrexim Bank expresses a guarantee to provide a single-entry point for all specialty insurance needs, so as to assist in optimally managing related risks for the trade and commerce sector in Africa, which will in turn boost trade throughout the continent.

This is highly tenable because of Afreximbank’s credible knowledge about the trade environment in Africa, which will in turn enable AFREXInsure to weigh its risk expertise by basing on the Bank’s continent-wide presence and deep understanding of the African market.

This will enable AFREXInsure to develop tailor-made insurance policies regarding cargo handling, construction, operations and energy sectors, which are paramount for the economic growth, plus boosting trade and investment throughout Africa.

It should be noted that Afriexim Bank is one of the biggest investment partners in Uganda, which means that Ugandan traders will benefit from the AFREXInsure policies.

Although Afrexim Bank is currently involved in Uganda’s  economic development at various levels, the Bank’s involvement in funding the construction of East Africa Crude Oil Pipeline (EACOP) stands out as one of its major investments in the country.

This is because the Bank is boosting the growth of Uganda’s Oil and Gas sector through financing the construction of the EACOP with funding of up to  USD200M, as revealed by President Yoweri Museveni in October last year.

But besides availing funding for the Crude Oil Pipeline, Museveni revealed that Afrexim Bank also expressed its willingness to avail the government of Uganda with funds for the construction of a refinery, which will enable the country to export her oil products.

By constructing this pipeline, the government of Uganda intends to use it for transportation of crude oil from the Albertine region to a refinery in Tanzania, where it will be refined into products that can be exported, thereby generating income, which will enable the government to spur economic development.