African Insurance Organization (AIO) President Tope Smart (pictured) has announced his organization’s intention to integrate the insurance sector into the African Continental Free Trade Area (AfCFTA). It was during the 25th African Reinsurance Forum held from November 27 to December 1, 2021 in Kigali (Rwanda).
“After careful consideration, the IOA secretariat has seen fit to include insurance in this agreement. We are not only looking at how the insurance sector could best fit into the Zlecaf, but also provide a suitable place for the cream of the African insurance industry to think about the way forward, ”said Tope Smart.
According to the president of the AIO, also managing director of New Insurance Plc, this continental agreement will create the largest free trade area in the world, given the number of countries involved.
“The agreement connects 1.3 billion people in 55 countries with a combined gross domestic product (GDP) valued at $ 3.4 trillion according to the African Union. It has the potential to lift 30 million people out of extreme poverty, but realizing its full potential will depend on putting in place significant policy reforms and trade facilitation measures, ”he said.
According to Tope Smart, the objective of the AIO for the establishment of the reinsurance forum is to encourage the exchange of business through bilateral contacts and discussions, which is in line with the objective of the organization to promote inter-African cooperation and the development of a healthy insurance and reinsurance industry in Africa.
“One of the instruments to ensure a healthy, resilient and robust economy for Africa was undoubtedly the Zlecaf. Also, I would like to highlight the contribution of the African insurance industry to the realization of this noble idea, the benefits of which cannot be overstated for the entire African continent, “he said.
