Micro Insurance Network Board Chair says financial inclusion critical for Africa’s growth

Speaking at a press conference during the 19th International Conference on Inclusive Insurance (ICII), Lorenzo Chan, Board Chair of the Micro Insurance Network, emphasized the pivotal role of financial inclusion in sustaining Africa’s growth trajectory and economic development.

Drawing from data provided by the African Development Bank and the World Bank, Mr. Chan highlighted Africa’s remarkable economic potential. He noted that Africa is already the second-fastest-growing region globally and is poised to become the fastest in due course. With its youthful population, 70% of whom are under the age of 33, the World Bank estimates that this demographic could contribute significantly to a remarkable 11 to 15% GDP growth between 2011 and 2013. This represents an unparalleled opportunity for the continent’s advancement.

Mr. Chan emphasized that to maintain this growth trajectory, it is crucial to protect those who have made economic progress from starting over due to unforeseen events like accidents or calamities. Hence, insurance plays a pivotal role in cushioning the impact, enabling individuals and businesses to absorb the shocks of losses. It not only offers financial stability but also eliminates the need to resort to high-interest borrowing or government assistance, empowering individuals to rebuild and resume their economic activities.

Furthermore, Mr. Chan highlighted the substantial impact of insurance on empowerment and its contribution to bolstering a country’s resilience. Ensuring that marginalized populations have access to inclusive insurance is essential for economic stability, he noted. Adding that, calamities and losses are an inevitable part of life, and insurance acts as a safety net that never takes a break.

Concluding his remarks, Mr. Chan urged the insurance industry to expand its reach and offer more inclusive insurance products. He stressed the importance of persuading governments to facilitate this expansion, allowing the marginalized segments of the population to access and benefit from inclusive insurance. This, he argued, is a critical step towards ensuring sustainable growth and economic development in Africa.