Against a background of
robust growth on the
continent, now is the time
for selective and strategic
investments, says Darlington
Munhuwani, regional
controller for Aon sub-Saharan
Africa.
“Governments have realised
that they cannot go it alone and
are actively courting foreign
investors to take part in public
private partnerships to mobilise
the necessary capital for the
development of the necessary
infrastructure to link up the
continent,” said Munhuwani.
“And while the progress is
slow, the fact of the matter is
that something is being done
to address the poor transport
network.”
Questions around the
sustainability of Africa’s
unprecedented growth
can, however, not be left
unanswered, he added.
“I think we can still be
cautiously optimistic about
Africa,” said Munhuwani. “One
always has to keep in mind
possible shocks to the global
economy and the adverse effect
this could have on economies. In
Africa the outbreak of the Ebola
virus is of grave concern.”
He said the costs associated
with the outbreak of the
virus already pointed to
the vulnerability of some
economies.
“This does raise further
questions around whether
current growth rates will persist
in the long-term,” he said. “But
without a doubt there is a lot
of opportunity in Africa at
present.”
The World Bank expects
sub-Saharan African Gross
Domestic Product (GDP) to
double its size from around
$1 trillion in 2010 to above
$2 trillion in 2025.
Several African countries
such as Angola, Ethiopia and
Mozambique are expected to
grow relatively fast, averaging
7% annual
growth over
the period
from 2010-
2025.
“Another
important fact
to note is that
despite faster
growth rates
in smaller
countries,
Nigeria and
South Africa
will continue
to be the two
largest economies in Africa,”
said Munhuwani.
For this reason Aon continues
to develop new products and
revamp traditional insurance
products to suit the changing
needs of its clients in Africa.
“Insurance is not necessarily
about the ‘bells and whistles’
but about the relevance of the
cover to each client’s specific
needs. As our clients expand
into new territories where they
face uncertainties about the
local insurance regulations, it is
important that we have ‘boots
on the ground’ to acquaint
them with the
nuances of
doing business
in a particular
country.”
He said Aon
had invested
heavily in
making sure
they understood
the state of
each individual
market and
could give
assurances that
in the event of
a claim their insurance covers
would perform.
“We have therefore invested
in a network of offices across
Africa so that we are able to
leverage our local relationships
with insurers and other
important stakeholders for the
benefit of all our clients.”
INSERT
$2 trillion
Expected sub-Saharan Africa GDP in 2025
INSERT & CAPTION
Insurance is not necessarily
about the ‘bells and
whistles’ but about the
relevance of the cover
to each client’s specific
needs .
– Darlington Munhuwani
