PRESIDENT Hussein Ali Mwinyi has tasked insurance stakeholders to strengthen the sector to be able to support huge investments flows into the Africa.
President Mwinyi challenged the stakeholders when addressing the 44th ‘Eastern and Southern Africa Insurers (OESAI) held in Zanzibar.
“We need a vibrant insurance sector to protect big capital at this time when mining industry in Africa is improving,” Dr Mwinyi stated at the opening of the two-day OESAI conference being held under the theme: ‘Future-proofing the Insurance Industry for Sustainability’.
The President pointed out that many countries particularly those having water resources, such as Zanzibar, focus on the blue economy as they invest in marine resources transportation, agriculture, fishing and livestock farming.
He said in the past Zanzibar was relying on the agriculture sector, producing cloves and spices for its economy.
However has decided to find another way of improving the economy by promoting the blue economy, which should be backed by stronger services like the insurance.
In addition, he said, the Union Government has also focused on investing in the Oil and Gas Energy sector, and improvement of infrastructures such as airports, seaports and roads.
Dr Mwinyi further stated that the ongoing economic reforms and investments in Africa are being hampered by several challenges, including inadequate or lack of financial resources, urging the insurance sector to improve services.
“Good and reliable insurance services is one of factors considered by investors when they consider to invest in development projects,” he said as he used the opportunity to encourage insurance companies in Africa to be creative and willing to invest in development projects in their respective countries instead of waiting to offer insurance services only.
Dr Mwinyi said in developed countries, insurance companies, Social Security Funds and other Financial Institutions have played a major role in obtaining funds and capital to implement development projects as well as promote employment.
Dr Mwinyi also emphasized on the importance of providing education on insurance to the community to increase the insurance coverage in the developing countries since majority of people are still unaware of importance of the such services.
He also argued that the insurance services were important in the implementation of the objectives of the African Continental Free Trade Area (AfCFTA), which was established to promote business and entrepreneurial activities in Africa.
“The moverment of traders, products, and services across borders requires the existence of better insurance services,” he stated.
The Zanzibar’s Minister of State in charge of Finance and Economy, Dr Saada Mkuya Salum, said during the conference the participants will have the opportunity to discuss challenges facing the insurance sector in Africa.
The conference is hosted by the Tanzania Insurance Regulatory Authority (TIRA).
TIRA’s Commissioner of Insurance, Dr Baghayo Abdalla Saqware, said the insurance sector has great importance in developing the national economy because it increases the financial liquidity.
Dr Saqware said the insurance sector provides protection to citizens and properties when various disasters occur.
The 44th OESAI conference involved about 350 participants from organizations in 30 countries in Africa and some invited from outside the continent including the host Tanzania, Angola, Botswana, Eritrea, Eswatini, Ethiopia, UAE, Mozambique, Rwanda and India.
Other countries are Morocco, Namibia, Russia, Saudi Arabia, Seychelles, Zimbabwe, Zambia, Mauritius, Uganda, England, South Africa, Kenya and Bahrain, where among other things participants will also discuss how Insurance services can be stronger and sustainable while considering environmental protection.
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