Africa Reinsurance invests $90m in Nigeria’s economy in 43 years
.Adds $5bn to economic development of Africa
.FCTA sets for private sector partnership for economic devt.-FCT Minister
African Reinsurance Corporation (Africa Re) has invested about $90 million in different sectors of Nigeria’s economy since inception in 1976 (43 years), Chairman of the company, Hassan Boubrik has revealed.
Boubrik who disclosed this at the foundation laying of its new head office in Abuja, also said that the Corporation has invested a total of $5billion in Africa which has contributed to the economic development of the continent.
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“Africa Re has invested $90 million invested in various Nigerian companies which has indirectly creating jobs in different sectors of the economy. Also, hundreds of Nigerian insurance professionals benefit from the various training programmes organised by the Corporation every year to help build capacity for the insurance industry in Nigeria.
“Similarly, in its 43 years of existence, Africa Re has been able to write and retain cumulatively over US$5 billion, which has been invested in Africa thereby contributing to the economic development of the continent.
“The Corporation has been consistently profitable since inception, accumulating a total profit of close to US$1 billion (US$971.62 million) since 1978.
“With two subsidiaries in South Africa and Egypt and offices in Morocco, Côte d’Ivoire, Kenya, Egypt, Mauritius and Ethiopia, Africa Re is now the largest and best-rated reinsurance company based on the African continent, offering world-class reinsurance covers and security to its clients and giving employment to hundreds of professionals from 26 African countries,” the chairman said.
He added that in Nigeria many insurance companies have benefited from different capacity training from the corporation in line with its vision to improving capacity and development in critical sectors of the economy.
“In Nigeria where the Corporation employs 30 per cent of its total staff strength, Africa Re provides continuous support to the development of the insurance industry. Unlike foreign reinsurers, Africa Re assists Nigerian insurers in mitigating forex risk by accepting payment of premiums in Nigerian bank accounts and in the national currency (naira). We have initiated various partnerships in agricultural insurance to cover Nigerian farmers, create awareness and enhance public knowledge and understanding of insurance.
“Africa Re was established when the African continent was losing about two-thirds of its meagre premium income to the western world. So the mission was clear to stop this capital flight by offering the capacity to the African insurance industry. Today, we are proud to say that the Corporation has lived up to expectation and fulfilled its mission, though there is still much work,” Boubrik added.
Giving the reason for moving the headquarters from Lagos to Abuja, the Group Managing Director/Chief Executive Officer of Africa Reinsurance Corporation, Corneille Karekezi said the corporation has been in Lagos for the past 43 years and felt the need to move to the federal capital territory which is considered the seat of power and also for enhanced partnership with other international organizations.
“It was high time we move to Abuja because it is the seat of power and most of international and PAN African organizations are situated here just like the African Development Bank which is one of our shareholders and Afreximbank which we have invested. Therefore we have to move close to our partners and it is our contribution to the development of the country.
“The insurance industry in Sub-Saharan Africa is at its infancy stage if we judge it by penetration, as such there is a lot of work to do.
“Africa Re is working with the 51 insurance companies in Nigeria and providing them capacity so that if there is any risk beyond their capacity, we can come in. This is because we are leading in the insurance business in Africa and are in par with Delliote in the United Kingdom and Chine Re in China which means we have the same financial
“We are in talks with the government to develop types of insurance which are critical to the development of Nigeria like the Agricultural insurance cover which is being developed by a different organization and we are working with all of them to bring knowledge and capacity.
“We also engage in human capacity development. Africa Re each year trains more than 100 young students across the country. In Nigeria we do in-house training and train their staff to raise capacity which is the weakness,” Karekezi explained.
Meanwhile, Minister of the Federal Capital Territory (FCT), Malam Muhammad Musa Bello, who also spoke at the event reiterated the commitment of the FCT Administration to support private sector institutions that would add value to the economic development of the nation’s capital.
According to the FCT Minister, “What you are building here today is in line with the views and objectives of the government of President Muhammadu Buhari to encourage private sector participants and also pan African organizations where Nigeria has partnership and ownership to be able to develop institutions that would serve as catalysts to increase economic activities.”
The Minister pointed out that Nigeria holds African countries on the board of Africa Re in high esteem, which was why the President himself allocated the land to the organization with an adjourning plot for the African Nexim Bank.
Malam Bello expressed the hope that the envisaged beautiful head office of Africa Re would be commissioned in the next 24 months, and will enhance the skyline and the aesthetic value of the FCT.
