Rwanda hosts the 42 Federation of African National Insurers Company (FANAF) Annual General Assembly which is hosted in the country for the third occasion with the previous having been hosted respectively in 2004 and 2012.
President Kagame who officiated the opening of the FANAF General Assembly delivered his remarks urging the insurance companies to consider their part in the economy of the world which is proving to be greatly reliant to the sector services according to the latest World Bank.
Kagame also recalled the insurances companies that they play an important role in making investment in big projects on national level and trust that make cross-border trade become true.
“Insurance products allow investors and entrepreneurs to take risks. In United States, around one-third of corporate debt is financed by insurers. Insurance also facilitates the growth of trust over long distances. Without it cross-border trade would grind to a halt. As insurance companies invest customer premiums, they mobilise savings toward domestic investment increasing the size of feasible projects in the national economy”.
President Kagame has thereby questioned the critical sluggish venture of African insurance companies despite new investment technology acquired in continental financial and capital markets and yet making the sector on continental level languishing with only 1.5 percent of global insurance income thus 75 billion despite the continent being rich in big population of 17 percent globally.
“This means fewer deaths in fires and floods, safer roads and buildings and less crime. So, where does Africa stand? One out of every six people on the planet, is an African, nearly 17 per cent. Yet Africa generates only 1.5 per cent of global insurance contracts, around 75 billion dollars, as of a few years ago.”
However, Kagame said that, there is room for future improvement as Africa looks to expand its trade connections across the continent. With an incoming signing of the agreement on the Continental Free Trade Area will be signed in Kigali next month, at an Extraordinary Summit of the African Union which will see insurance sector being involved and also opening gates for open competition continental markets for African firms.
The Express News