Octagon Africa bullish as SME growth drives improved uptake of retirement savings solutions

Octagon Africa, a leading financial services provider, is making strategic moves to deepen its penetration in the African market by expanding its retirement and savings solutions. In a recent interview with CNBC Africa, Fred Waswa, Chief Executive Officer of Octagon Africa, highlighted the importance of catering to the growing small and medium enterprises (SMEs) sector in African countries. Waswa emphasized that the rise of SMEs is driving investments in retirement and savings solutions, ultimately reshaping the landscape of financial planning in Africa. The conversation delved into the current saving culture in East Africa, where Waswa pointed out the disparity in savings percentages across Kenya, Uganda, and Tanzania. While Kenya sees a significant portion of funds in retirement savings managed by the private sector, Uganda and Tanzania lean heavily on state schemes, impacting the development of capital markets in these regions. Waswa also acknowledged the leading role of South Africa in promoting a savings culture and retirement benefits industry, with Nigeria, Kenya, and Ghana following suit. The interview further explored Octagon Africa's partnership with Alexander Forbes, a collaboration that has enabled the company to enhance its product offerings and expand its reach across different African countries. Through this partnership, Octagon Africa has incorporated bundled products tailored to the needs of clients, with a focus on providing African solutions to Africans. The strategic alliance with Alexander Forbes has not only bolstered Octagon Africa's internal processes and systems but also facilitated the exchange of resources and expertise in retirement solutions and risk management. Looking ahead, Waswa discussed the promising opportunities within the policy environment in Kenya and other African markets. He highlighted the increasing demand for savings and risk management solutions, driven by a younger population entering the workforce. With 70% of the African population aged below 35, there is a growing need for accessible and sustainable savings platforms for retirement. Waswa emphasized the importance of expanding coverage beyond traditional employer-centric schemes to encompass small and medium enterprises, which play a vital role in driving African economies. While opportunities abound in the realm of retirement planning and insurance penetration, Waswa also highlighted the risks associated with inadequate savings rates and limited coverage, underscoring the need for comprehensive policy reforms to foster a robust savings culture across Africa. Octagon Africa's commitment to innovation, strategic partnerships, and client-centric approach positions the company as a key player in reshaping the landscape of retirement and savings solutions in Africa, catering to the evolving needs of SMEs and individuals seeking financial security in the long term.