Vice President Yemi Osinbajo
By DAVID IORJA, Abuja –
Vice President Yemi Osinbajo has said there is a potential income gain of up to 450 billion dollars from the African Continental Free Trade Area (AfCFTA).
Osinbajo’s spokesman, Laolu Akande, in a statement, said the vice president spoke virtually at the closing of the 2021 Conference of African Insurance Practitioners.
The theme of conference is, “Rebuilding Africa’s Economy: An Insurance Perspective”.
He said that amidst monumental challenges posed by climate change, particularly energy transition and related issues, the coming decade anchored on AfCFTA offered great opportunities for Africa’s socio-economic transformation.
VP Osinbajo urged African insurance practitioners to leverage opportunities in the AfCFTA
“Every smart economic grouping, whether governments or businesses, must be thinking, planning and strategising for these new times. The free trade agreement presents a major opportunity for African countries.
“By some estimates, if we get it right, we can bring several millions out of extreme poverty and raise the incomes of 68 million others who live on less than 5.50 dollars per day.
“There are potential income gains of up to 450 billion dollars, and just cutting red tape and simplifying customs procedures alone could drive up to 250 billion dollars of that sum.”
He said that all amounted to plenty opportunities for the insurance industry in Africa. The vice president said it entailed more trade in goods which would mean greater need for insurance services; brokers, in particular, should expect a boon.
On the issue of climate change, Osinbajo probed on how the African insurance industry prepared for the interesting days ahead.
VP Osinbajo said that for Africa, there was perhaps a more significant challenge.
He said that in the past two years, the wealthier countries, after building their own economies on fossil fuels, had started banning or restricting public investments in fossil fuels, including gas.
“Seven European countries, including France, Germany, and the UK, announced that they would halt public funding for certain fossil fuel projects abroad.
“Also, the World Bank and other multilateral development banks are being urged by some shareholders to do the same. The African Development Bank, for instance, is increasingly unable to support large natural gas projects.
“Already, some OECD based insurance companies are already committing to reducing their commitments to carbon intensive industries by 2030.”