Insurance key to Africa’s economic transformation – Oyedele

Insurance will play a pivotal role in unlocking Africa’s economic potential and supporting sustainable development across the continent, Taiwo Oyedele, Nigeria’s minister of Finance, said on Wednesday.

Speaking at the Golden Jubilee celebration of the African Reinsurance Corporation (Africa Re) in Abuja, Oyedele, who was the special guest of honour, said stronger insurance markets, deeper financial integration, and innovation-friendly regulation are essential for mobilising capital, managing emerging risks, and driving Africa’s next phase of growth.

Oyedele, who eulogised the achievements of Africa Re over the past 50 years, described the institution as a compelling example of what African countries can achieve when they unite around shared economic goals.

According to him, Africa Re was established in 1976 with a clear vision “to strengthen Africa’s insurance capacity, reduce dependence on external markets, and support economic development through a stronger and more resilient insurance ecosystem.”

He noted that the Corporation has evolved beyond its traditional role as a reinsurer to become a symbol of African cooperation and resilience.

“Today, the institution has become much more than a reinsurer. It has become a symbol of African cooperation, resilience, and the power of collective ambition,” he said.

Highlighting the Corporation’s growth over the past five decades, Oyedele noted that Africa Re’s record revenues of more than $1 billion, strong financial ratings, respected brand, and sustained profitability demonstrate the value of regional collaboration.

“With record revenues exceeding one billion US dollars, strong financial ratings, a respected brand, and sustained profitability, Africa Re stands as compelling evidence of what is possible when African countries come together around shared goals,” he stated.

Reflecting on the origins of the Corporation, Oyedele recalled that African insurance markets in the years following independence were fragmented and heavily dependent on foreign reinsurers, resulting in significant capital outflows from the continent.

“As a result, substantial volumes of reinsurance premiums flowed out of the continent annually, limiting local capacity and depriving African economies of valuable resources,” he said.

He explained that African leaders, working alongside the African Development Bank, responded by creating a continental institution that would retain African capital, strengthen domestic insurance markets, develop technical expertise, and support economic growth.

Oyedele described the establishment of Africa Re as more than the creation of a financial institution.

“It was a declaration of confidence in Africa’s ability to provide African solutions to African challenges,” he said.

The fiscal policy expert also highlighted Nigeria’s longstanding relationship with the Corporation, noting that the country’s strategic role in the development of Africa Re makes its success a source of national pride.

According to him, Nigeria’s insurance sector has evolved significantly from its modest beginnings in the 1970s through indigenisation, regulatory reforms, recapitalisation, and consolidation, emerging as one of Africa’s leading insurance markets.

He further pointed to the Federal Government’s efforts to strengthen the industry through recent reforms, including the enactment of the Nigerian Insurance Industry Reform Act 2025.

“The growth in local underwriting capacity has enabled the retention of a larger proportion of risks within the country, thereby reducing capital flight and supporting economic stability,” he stated.

Oyedele commended Africa Re for supporting the development of Nigeria’s insurance market through technical training, knowledge sharing, and professional exchanges while helping insurers manage increasingly complex risks.

Looking ahead, he said Africa’s economic transformation, driven by the African Continental Free Trade Area (AfCFTA), rapid urbanisation, digital innovation, and infrastructure expansion, presents both opportunities and challenges.

He also drew attention to emerging risks, including climate change, geopolitical uncertainty, and the growing influence of artificial intelligence on global competitiveness. While acknowledging progress in regional integration efforts, he noted that Africa’s financial architecture remains fragmented, limiting the continent’s ability to mobilise capital for development.

Across the continent, he advocated risk-based and innovation-friendly regulatory frameworks that support financial inclusion, insurance innovation, and digital distribution while maintaining sound prudential standards.

“We must encourage greater collaboration among regulators. We must strengthen cross-border supervision. We must create pathways for insurance innovation, digital distribution, and new forms of risk transfer,” he said.

According to him, Africa Re is well positioned to lead the next phase of development in Africa’s insurance sector because of its strong capital base, technical expertise, and continental reach.

“The Federal Republic of Nigeria remains committed to building a more inclusive and technologically driven insurance sector with the goal of supporting sustainable economic development. In this regard, we look forward to further strengthening our partnership with Africa Re,” he said.

He called on stakeholders to build on the achievements of the past five decades and pursue deeper integration, stronger institutions, and smarter regulation across the continent.

“Let us commit ourselves to ensuring that the next 50 years are marked by even greater innovation, resilience, and impact,” he said.

Earlier, Moustafa Coulibaly, chairman of the Board of Africa Re, said the Corporation has become a symbol of international strength and excellence through sound governance and a steadfast belief in Africa’s potential.

“Today, our financial strength ratings reflect not only financial stability and prosperity but also the robustness of our governance framework and the value of our long-term strategic partnerships. These achievements are the result of decades of prudent oversight, collective stewardship, and a shared commitment to institutional excellence,” he said.

Coulibaly added that beyond financial performance, Africa Re’s true legacy lies in developing Africa’s insurance ecosystem through capacity building, support for insurance regulation, and strengthening insurance markets across the continent.

He said the Board remains committed to ensuring that Africa Re continues to fulfil its founding mandate while adapting to challenges such as climate change, technological disruption, and geopolitical uncertainty.