Afreximbank launches insurance subsidiary to support intra-African trade

The African Export-Import Bank (Afreximbank) has recently launched its wholly-owned insurance management services subsidiary, AFREXInsure, with the aim of revolutionizing trade finance insurance in Africa. This move is seen as a significant step towards de-risking and building resilience for businesses across the continent. CNBC AFRICA had the opportunity to sit down with Kee Chong Li, the Chairman of AFREXInsure, during the bank's annual meetings in Accra, Ghana. AFREXInsure is part of Afreximbank's efforts to promote African trade, particularly intra-African trade, by providing specialty insurance offerings tailored to the needs of African enterprises. By keeping insurance premiums within the continent, AFREXInsure aims to enhance the financial autonomy and prosperity of Africa. The decision to establish and regulate AFREXInsure in Mauritius was based on the country's business-friendly environment and its status as a hub for financial and group holdings of African companies. This strategic choice allows AFREXInsure to operate in a conducive regulatory environment and offer cost-effective insurance solutions to African businesses. The low insurance penetration in Africa presents a significant opportunity for AFREXInsure to unlock value in the continent's insurance space. By securing specialty insurance premiums within Africa and providing captive cells for large corporations with subsidiaries across the continent, AFREXInsure seeks to drive the development and growth of Africa while enhancing the continent's insurance sector.