The insurance industry has been identified as a vital pillar in Africa’s efforts to unlock the full potential of the African Continental Free Trade Area (AfCFTA), valued at an estimated $3.4 trillion.
The call was made by the Executive Vice President of Intra-African Trade and Export Development at Afreximbank, Mrs. Kanayo Awani, during the 52nd Conference and Annual General Assembly of the African Insurance Organisation (AIO) held in Cairo, Egypt.
Delivering the keynote address on the theme, “Insurance as an Enabler of Economic Growth for All – Taking Advantage of Free Trade Across Africa,” Awani stressed the need for African insurers to strengthen underwriting capacity, deepen regional integration and retain more risks within the continent.
According to her, the success of the AfCFTA and Africa’s industrialisation agenda will depend heavily on the ability of the insurance sector to support trade, infrastructure development, investment and cross-border commerce through effective risk management solutions.
Awani noted that Africa’s ambition of creating a single market of 1.5 billion people with a combined Gross Domestic Product (GDP) of about $3.4 trillion requires a strong and resilient insurance industry.
She explained that increased trade and investment activities across the continent would naturally lead to higher levels of risk, making insurance a critical tool for protecting businesses, investors and governments.
The Afreximbank executive also emphasized the importance of retaining more insurance risks within Africa. She said this would help build local capacity, strengthen financial institutions and reduce dependence on foreign markets.
Industry experts at the conference agreed that insurance plays a central role in facilitating economic growth by providing the confidence needed for businesses to expand operations and engage in cross-border transactions.
Stakeholders further called for greater collaboration among African insurers, regulators and financial institutions to develop innovative products that support the objectives of the AfCFTA.
As Africa pushes for deeper economic integration, the insurance sector is increasingly being viewed as a strategic partner in driving sustainable growth, enhancing investment and supporting the continent’s long-term development goals.
