Experts urge insurers to explore Africa’s food market for expansion

Stakeholders in the insurance industry across Africa have called on underwriters in the region to tap into huge opportunities in the food market for industry expansion.

This was the call of over 1,800 delegates across African countries, who gathered at the 49th Conference and General Assembly of the African Insurance Organisation (AIO) held in Algiers, Algeria.

Addressing delegates at the conference, the outgoing president of the AIO, Dr. Ben Kajwang, said Africa had a real opportunity to supply the rest of the world as well as itself with food, considering the benefits of having 65 per cent of the world’s uncultivated land as well as abundant rain, 300 days of sunshine and fertile soil.

Kajwang also believed that Africa has the opportunity to deliver two or three times the amount of cereal that it does currently, employing many people across the continent.

Besides, he said, there is a real prospect for the African insurance market to evolve. He said that, at the moment, the market is riddled with low penetration levels and a limited range of products.

He suggested that thinking outside the box would enable the market to take advantage of the many opportunities and grow.

However, he cited three major challenges that must be addressed, one of which is climate shock.

“The second of the challenges is the global price shock. In the wake of the COVID-19 pandemic,” Dr. Kajwang.

He added: “The final of the three challenges is undernourishment. In Africa, some 21 per cent of the population was considered under-nourished a few years ago. But today, that figure has reached 25 per cent. The implications of that are huge, with grave consequences for the health and welfare of African populations.”