Webinar: “Unlocking risk management for enterprise development in Sub-Saharan Africa”
Join Making Finance Work for Africa (MFW4A) and GIZ SME Finance Task Force for a Webinar on SME Insurance entitled: "Unlocking risk management for enterprise development in Sub-Saharan Africa”.
This webinar will be held on 21 May 2019 @ 12:00 am GMT (Abidjan/Dakar) / 01 pm (Lagos/London) / 02 pm (Cape Town/ Frankfurt)/ Paris) / 4 pm (Nairobi)
Enterprise development is a key development policy priority across SSA national agendas. Small and medium enterprise development is typically considered a key driver of economic growth, employment, and innovation. However, insurance support for these enterprises is currently limited – although several SME-focused insurance products were identified in Ghana, Nigeria, Kenya and Rwanda, most available products are characteristic of scaled-down large corporate products that do not necessarily account for the nuanced needs of SMEs.
Nevertheless, insurance markets can make a greater contribution towards enterprise growth and economic development by encouraging productive risk-taking, while protecting companies from losses arising due to external shocks. Moreover, in the absence of effective risk transfer and risk management functions in an economy, enterprises struggle to access financing for growth. This is, in part, due to the risk that they are perceived to pose to lenders. A large percentage of firms across the four countries identifies access to finance as a major constraint – between 37.1% and 71.5% of small firms and between 30.8% and 52.1% of medium firms.
Insurance can reduce the risk of borrower default or provides alternatives to collateral to reduce lender risk. This could allow for more credit to be extended on better terms. Hence, constrained access to finance could be relieved by access to insurance. During this webinar, Cenfri will present the learnings from a series of diagnostics we recently conducted in partnership with DFID, the World Bank and FSDA, in Ghana, Nigeria, Kenya and Rwanda on the current and potential role of insurance for enterprise development on the continent.
Mr. Jeremy Gray (Lead Presenter) , Senior Engagement Manager , Cenfri.
Mr. Sahler Gregor (Moderator) , Expert in financial systems development / Advisor in the Sector Program Global Initiative for Access to Insurance , GIZ