The immediate past president of the African Insurance Organisation, Mr. Tope Smart hand the mantle of leadership to Kenyan’s Dr Ben Kajwang at the 48th General Assembly and 50th anniversary of the AIO in Nairobi, Kenya
By Favour Nnabugwu
The Board of Directors of the African Export-Import Bank (Afreximbank) at its 134th meeting in Cairo, Egypt, renewed its approval of a $1 billion facility to operationalise the African Continental Free Trade Agreement (AfCFTA) Adjustment Funds.
It added that a $10 million Grant Funding to seed the Base Fund of the AfCFTA Adjustment Funds, was equally approved yesterday
Afreximbank and the AfCFTA Secretariat were mandated by the AfCFTA Council of Trade Ministers and the African Union Heads of State and Government to establish and operationalise the AfCFTA Adjustment Funds, which consists of the Base Fund, the General Fund, and the Credit Fund.
The Base Fund will be used to mobilise grants to address tariff revenue losses and to support AfCFTA State Parties to implement the various protocols under the Free Trade Agreement.
The General Fund will be used to mobilise concessional funding, while the Credit Fund will be used to mobilise commercial funding that will be used to support the public and private sector including small and medium enterprises (SMEs), youth and women to adjust to the new trading environment arising from the AfCFTA.
Commenting on the approvals, Professor Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank, said, “Afreximbank is delighted to have been appointed the Fund Manager of the AfCFTA Adjustment Funds following the extensive collaborative work it has done with the AfCFTA Secretariat and the African Union Commission during the past few years.
“The renewal of the US$1 billion facility and the US$10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality. We thank the AfCFTA Secretariat for the solid partnership that is bringing the aspirations of the AfCFTA within reach.”
The funding required under the Adjustment Funds is estimated at $8-10 billion. The AfCFTA Adjustment Fund will be managed by Afreximbank, through its subsidiary, the Fund for Export Development in Africa (FEDA), in collaboration with the AfCFTA Secretariat.
“We urge other development partners and financial institutions to provide additional resources required under the Adjustment Funds to support the implementation of the AfCFTA”, said Mr. Wamkele Mene, the Secretary-General of the AfCFTA Secretariat.
“The endorsement by the Afreximbank Board brings the continent closer to operationalising the AfCFTA Adjustment Funds before the end of 2022
By Favour Nnabugwu
President Muhammadu Buhari has approved the renewal of the appointment of Patience Oniha as the Director-General of the Debt Management Office (DMO) for a second term of five years.
A statement issued in by the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, said the re-appointment was in accordance to Section IV (9-i) of the Debt Management Office (Establishment ETC) Act, 2003.
The statement further said that the renewal takes effect from July 1, 2022.
“Her appointment for a second term was based on the significant achievements recorded by the DMO in the last 5 years, under her leadership.
“Amongst the achievements are the introduction of Sukuk and Green Bonds to finance the development of infrastructure where there is a huge gap.
“Under her watch, as part of the initiatives to improve the sustainability of the public debt and opening up avenues for raising long term funds for corporates, the DMO introduced long term Bonds with tenors of 30 years in the domestic and international markets.
“This is aside from attracting diverse investors including retail investors to the FGN Bond Market, ” the statement said.
It further added, “Internally, Oniha introduced reforms to strengthen the DMO, as a critical agency in the public finance ecosystem of the country.”
By Favour Nnabugwu
The Central Bank of Nigeria (CBN) has guaranteed the sum of N130. 90 billion loan to farmers under the Agricultural Credit Guarantee Scheme Fund (ACGSF) between its inception in 1977 and May 2022.
The Chairman of the Board of the ACGSF, Mr. Stephen Okon, gave the update at the 2021 National Best Farmers of the Year Award, held in Abuja, yesterday.
Okon said, “The ACGSF Scheme has proved relatively successful in de-risking the agricultural sector in Nigeria as evidenced in the number of loans guaranteed from inception to date.
“A total of 1,232,326 loans valued N130.903 billion were guaranteed from inception to May 2022 out of which 973,646 beneficiaries had repaid a total of N98.91b.”
The chairman said that the federal government and the CBN both contributed to the Fund in the ratio of 60 percent and 40% respectively, with the CBN doubling as the Managing Agent and the Secretariat.
Mr. Okon said that the timing of the event was apt, given the fact that countries across the globe were experiencing challenges, resulting from the Russian – Ukrainian War.
“Its impact being – global oil and food crises affecting the agricultural sector which has contributed to disruptions in domestic food supply chains and other shocks affecting food production.
“This has led to the loss of incomes, food security risks, inflationary trends, and creating serious tensions in many countries,” he said.
The chairman noted that achieving food security not only carried significant benefits for human health but also served as the basis to achieve sustained economic growth.
“Awakened by a potential rise in food insecurity, many countries and organizations are mounting special efforts to keep agriculture safely running as an essential business,” he added.
In his remarks, the Abuja Branch Controller of the CBN, Mr. Michael Ogbu, said that the successes achieved under the ACGSF had led to significant improvement in Deposit Money Banks’ (DMB) lending to the agricultural sector and to a remarkable growth in the agri-business value chain in Nigeria.
He stressed the determination of the Management of the CBN towards supporting farmers to grow exponentially, saying, “ that way, Nigeria can actually grow what she eats.”
The ACGSF was established by Decree No. 20 of 1977 to guarantee agricultural credit facilities granted to farmers.
The Scheme encourages Deposit Money Banks and Microfinance Banks to lend to those engaged in agriculture by providing guarantee.
It mitigates risks associated with banks’ lending to agriculture by guaranteeing to pay banks 75 per cent of the net amount in default in accordance with the provisions of the enabling Act.
Under the new ACGSF Amendment Act 2019 the maximum for a non-collateralized loan has increased from N20,000.00 to N100,000.00, while the maximum for a collateralized loan moved from N10 million to N50 million.
Mr. Peter Okonkwo emerged overall winner of the 2021 National Best Farmer of the Year.
He was said to have taken an N8. 050 million facility under the scheme for the procurement of additional agricultural plants, machineries and packaging in 2018 and with it, generated N15 million income and a profit of over N2,7 million.
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Favour Nnabugwu
The Group Managing Director of Consolidated Hallmark Insurance (CHI) Plc, Mr. Eddie Efekoha is now a member of the Executive Committee of the African Insurance Organisation (AIO).
Efekoha admission into the committee took place at the 48th AIO Annual conference and General Assembly in Nairobi, Kenya, was in recognition of his immense contribution towards the growth and development of insurance in Nigeria and on African continent.
In his role, aside working with AIO Secretariat, he is expected to continue to use his rare talents and experience to deepen the penetration of insurance and address all issues on the African Insurance landscape
Efekoha who was once the chairman of Nigerian Insurers Association ( NIA) has been a strong pillar in the Nigerian insurance industry, having become the President of the Chartered Insurance Institute of Nigeria (CIIN) and the Chairman of Nigerian Insurers Association (NIA) in the past of which he served meritoriously.
In a congratulatory letter from CIIN to Efekoha on his feat, the President, CIIN, Sir Muftau Oyegunle, applauded his impact and contributions toward deepening insurance penetration in Nigeria and across the continent, expecting him to dip into his experience to excel in his new role.
“Everything you have done and accomplished in improving the insurance industry both in Nigeria and Africa are plausible. We are sure that this is another opportunity to continue to use your rare talent and experience to deepen the penetration of insurance and address all issues on the African insurance landscape. Accept the institute’s hearty congratulations.”
Efekoha holds a Bachelor’s degree in Insurance and a Master’s degree in Business Administration both from the University of Lagos.
He was the Executive Vice Chairman/CEO of Consolidated Risks Insurers, the past President of the Chartered Insurance Institute of Nigeria (CIIN) and the 22nd Chairman of the Nigerian Insurers Association (NIA) from 2016-2018
He has worked with leading Insurance Brokerage firms in top executive positions including Hogg Robinson Nigeria, Glanvill Enthoven & Co (Nig.) and Fountain Insurance Brokers as pioneer MD/CEO
By Favour Nnabugwu
The African Insurance Brokers Association (AIBA) has elected the Chairman of Boff Insurance Brokers, Chief Babajide Olatunde-Agbeja and as it’s new Chairman and Ekepma Ezeibe as Secretary
Others also elected are as follows: Mr. Shaibu Ali – Ghana – Vice Chairman; Mr. Yombo Bammeke – Nigeria – Treasurer; Mr. Nelson Omolo – Kenya – Ex Officio; Mr. Shola Tinubu – Nigeria – Ex officio and Mr. Jean Baptiste Ntukamazina- AIO SG – Ex Officio.
The election which took place on the sideline of ongoing 48th African Insurance Organisation Conference in Nairobi,Kenya.
The executive are to serve for one year and it is expected that heir election will give a great impetus to the body in accomplishing its mandate of broadening the practice of insurance broking in Africa.
Caption:
L- The outgoing President of the African Insurance Organisation, AIO, Mr Tope Smart and wife, Mrs Tonia Smart
By Favour Nnabugwu
Africa insurers and reinsurers have been tasked to change to their business models and increase their investments for them to meet environmental, social and governance (ESG) considerations.
Kenya’s cabinet minister for Treasury Ukur Yatani told the 1,500-plus delegates attending the African Insurance Organisation (AIO) Conference in Nairobi that new business models and more investments hold the key to meeting their ESG goals.
In an address delivered by his assistant, Mr Yatani said the AIO conference’s theme of ‘Insurance and Climate Change: Harnessing the opportunities for growth in Africa’ speaks to what the continent is experiencing currently.
“Insurance industry has a critical role to play in helping companies and nations to manage, measure and reduce the impact of climate change,” said Mr Yatani.
“They therefore cannot continue with their business as usual in the face of increasing frequency and scale of risks linked to climate change. We must adjust our business models to better respond to ESG issues.”
He called for collaborations with other players including governments if they are to “play their rightful roles” in championing and promoting environmental sustainability issues.
In 2012, the United Nations Environment Programme Finance Initiative developed a framework for the insurance industry on the principles for sustainable insurance.
The framework was to, among other things, help insurers embed ESG issues in their business models and raise transparency and accountability of underwriters on ESG issues.
But lean budgets and challenges on their traditional insurance products have been a barrier to increasing focus on ESG.
“I want to encourage insurers and insurers operating in Africa to increase their retention capacity through increased investments on the continent. The increased investments will encourage and ensure that we meet the ESG goals,” said Mr Yatani.
Climate change conversations are being given preference especially as floods, drought, wildfires and locusts disrupt livelihoods in Africa, presenting challenges that insurers can transform into opportunities.
Insurers and reinsurers have been challenged to use the Nairobi conference to take stock of the progress that has been realised in embedding ESG in their businesses.
“As the assembly continues to discuss ESG issues, I urge them to critically examine the achievements and the progress that has been made towards the fulfilment of those goals,” said Mr Yatani.
He said while Africa’s insurance sector has prioritised access and inclusivity, many countries have been slow on developing regulations and rolling out products for the excluded and the marginalised groups.
The outgoing President of African Insurance Organisation (AIO), Mr. Tope Smart, has frowned at the low insurance penetration rate in African.
He made his position known yesterday at the ongoing 48th Conference and Annual General Assembly of the AIO in Nairobi, Kenya.
According to him, “African insurance industry remains one of the least penetrated in the world, with an average of about 2%, which is low compared to the global average of around 7 percent”
“Our industry’s growth keeps getting slowed down by our inability to build substantial capital reserves due to poor saving culture and “Premium flight”, while “there is still heavy reliance on foreign expertise,” he said.
He added that “Our industry is still plagued by poor public image and lack of trust”, saying “these and many more are the challenges we face today, and we need to address them if we intend to secure a better future for our industry.”
“As AIO clocks 60 this year, he informed that the Golden Jubilee of the organisation will be marked by a symposium, where the operators intend to discuss some of these challenges facing the insurance industry in the continent.
In view of the fact that the African Development Bank posited that Africa is the most vulnerable continent to climate change impacts under all climate scenarios above 1.5 degrees Celsius.
He expressed worries that “despite having contributed the least to global warming and having the lowest emissions, Africa faces exponential collateral damage, posing systemic risks to its economies, infrastructure investments, water and food systems, public health, agriculture and livelihoods, threatening to undo its modest development gains and slip into higher levels of extreme poverty”.
African Insurance Organisation (AIO) said it signed a revised Headquarters Agreement with the Cameroonian Government in Yaoundé recently, which now grants the AIO all the merits of an international organisation with accompanying advantages.
As the continent’s risk managers, he called on the insurance sector to provide risk management solutions, in the form of risk mitigation and transfer, building resilience and enabling the continent transition to net-zero greenhouse gas emissions.
By Favour Nnabugwu
AM Best has extended its congratulations to the African Insurance Organisation (AIO) on its 50th anniversary, which is being celebrated during the ongoing 48th annual AIO Conference and Annual General Assembly in Nairobi, Kenya.
The weeklong conference began on Saturday, 25 June 2022 with the theme of “Insurance and Climate Change: Harnessing the Opportunities for Growth in Africa.” The golden jubilee will be celebrated under the theme, “AIO at 50: A call for Africa Insurance Renaissance.”
“I would like to offer congratulations on this milestone to the AIO and its entire membership and commend its new strategic initiatives for advocacy, research, training, capacity and reputation building and for nurturing a forum for communication in the insurance industry,” said Dr. Edem Kuenyehia, Director of Market Development for Africa at AM Best.
“AM Best is committed to being a truly global rating agency, servicing the needs of the (re)insurance industry throughout the world including the growth economies across the African continent,” added Nick Charteris-Black, Managing Director, Market Development – EMEA, AM Best. “Through our rating activities, we seek to strengthen the financial solvency, stability, and sustainability of the insurance industry in support of economic growth and the well-being of all stakeholders.”
Insurance and reinsurance companies and other market stakeholders looking to learn more about AM Best and its approach to issuing financial strength ratings can contact:
By Favour Nnabugwu
ABUJA- President Muhammadu Buhari has approved the appointment of Mr. Olawale Tunde Fasanya as the new Director General and Chief Executive Officer of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN.
The appointment which took effect from 6th June 2022 was contained in a letter dated 23rd June 2022 and signed by the Honourable Minister of Industry, Trade and Investment, Otunba Niyi Adebayo CON.
A statement signed by Ibrahim Kaula Mohammed, Deputy Director/Head, Corporate Affairs unit of the agency described Fasanya as a seasoned technocrat and a certified Business Development Advisor with a proven track record of landmark accomplishments of thirty-five years in the Micro Small and Medium Enterprises, MSMEs ecosystem in Nigeria.
Born on June 3rd, 1962 in Ogbomosho, Osun state , Fasanya holds a Bachelor of Art degree in English and Literary Studies from the University of Ife, now Obafemi Awolowo University, Ile Ife in 1985.
He is also a holder of Advanced Certificate in Public Relations from the Nigerian Institute of Journalism, Lagos and a Masters in Public Administration from the Lagos State University, Lagos in 1994.
A lover of knowledge, Fasanya also parades a legion of other qualifications including a Diploma in Market Business Development Service from the International Training Centre of the International Labour Organization, ILO, among others.
He is due for the award of PhD in Public Policy Analysis and Management from the University of America.
He started his working career in a publishing firm, Jator Publishing Company Ibadan, Oyo state as deputy editor/administrative officer.
He switched into public service, joining the National Productivity Centre , NPC, Abuja where he served as Productivity Officer, Senior Productivity Officer, Assistant Chief Public Relations Officer, and Chief Public Relations Officer between August 1998 to June 1999.
Mr Fasanya also served as Personal Assistant to Hon. Minister of State, Ministry of Defence between June 1999 to February 2002 and later Special Assistant to the Hon. Minister of Solid Minerals between February 2002 to May 2003.
He was a pioneer staff of SMEDAN when it was set up in 2003 serving as a Special Assistant to the Pioneer Director General/CEO of the Agency, Mrs. Modupe Adelaja and was overseeing all units under the Director General’s Office as Deputy Director and Group Head, Corporate Affairs.
He was appointed acting DG of SMEDAN between July to December 2008 and later as Group Head, Strategic Planning, Policy and Coordination between April 2009- January 2011.
Mr. Fasanya upon his promotion in January 2011, was appointed Director, Strategic Planning Policy and Coordination, a position he held till October 2014 when he was promoted as Director, Enterprise Development and Promotion, the engine room of the agency, a position he held till 2018 when he was appointed to another strategic position as Director, Policy Planning, Research, Monitoring and Evaluation, a position he distinguished himself so well till his retirement from the civil service on 3rd June, 2022.
He was a member, ECOWAS committee on the production of MSMEs Development Charter for Member States (2012-2014) as well as Head of secretariat, National Council on MSMEs, among others.
