"To take up the challenge of harnessing domestic resources, Africa needs a new way of investment financing, through innovative partnerships and public-private partnerships, and by encouraging the role of investment funds, banks, pension funds and, of course, insurance companies in the long-term financing of infrastructure projects," Tunisian Federation of Insurance Companies (FTUSA) President Hassène Feki said on Monday. Teking the floor at the opening ceremony of the 27th AIO African Reinsurance Forum hosted in Tunis on September 30-October5, under the theme: "Paradigm Shift: Can Africa's (RE) Insurance Industry Support a Self-Funded Africa,' Feki pointed out that only 40% of the African population currently has access to electricity, less than 10% is connected to the Internet and only 25% of the African road network is paved. Indeed, "Africa has an infrastructure deficit, which is costing its economy up to 40% in terms of lost productivity and a shortfall in economic growth estimated at 2 points of GDP," he underlined. This infrastructure deficit is one of the major obstacles to the continent's development, he said. Hassène Feki underlined the importance of encouraging and developing life insurance on the African continent, through regulations and tax incentives that will enable the sector to raise long-term savings and, consequently, resources to finance infrastructure transformation projects. Speaking at the event, President of the African Insurance Organisation (AIO) Chérif Benhabiles said that the infrastructure deficit in Africa required trillions of dollars. "Crucial issues such as Africa's urgent infrastructure development needs, the current level of investment, the extent to which the insurance and reinsurance sector can get involved in public/private partnerships to enhance infrastructure development projects, regulatory challenges and incentives, possible challenges that reinsurers may face when investing in Africa and more should be examined during this Forum," he considered. Chief of staff to the Finance Minister Zouheir Atallah pointed out for his part, that the global insurance sector is characterised by the fact that the industrialised countries hold the lion's share of the market, to the tune of more than 90%. At the same time, the distribution of written premiums remains uneven across the different continents, with Africa's share of the market at a modest 1 to 1.5%. "It is for this reason that it is more important than ever for African markets to further develop cooperative actions in order to face up to competition and improve their positioning," he said.

Source: Agence Tunis Afrique Presse