How Africa can grow its insurance industry to facilitate trade and investment on the continent

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The African insurance industry is underdeveloped, which means there is huge scope for growth, but companies first need to overcome some obstacles

The Intra-African Trade Fair was held in Durban from November 15 to 21 and was projected to attract 5,000 conference participants and 10,000 visitors and buyers. The 2021 fair focused on t

One vital service underpins all of this potential, and for the most part it is not currently being provided by African-based companies. However, as it stands the African insurance industry is underdeveloped. This means there is huge scope for growth. Essentially the service that enables all potential trade and investment growth on the continent is itself a huge untapped market. This is true for insurance firms both in SA and across the continent.

A lack of balance sheet heft is by no means the only obstacle facing African firms looking to expand their footprint on the continent. The same market challenges that affect businesses in general are also faced by the insurance sector. Most pertinent of these are currency fluctuations, poor regulatory and governance environments, and unstable politics often characterised by a shaky rule of law and nepotism.

 

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