Mwinyi to insurers: Grab the opportunities in mega deals

Zanzibar. Zanzibar President Hussein Ali Mwinyi yesterday challenged insurance firms to seize the opportunities available in big projects associated with the blue economy in order to play a role in transforming Africa’s economy.

Dr Mwinyi said during a meeting in the Isles that many African countries were implementing huge development projects especially in the oil, gas and tourism sectors.

However, he said a number of African countries were failing to implement such projects due to the lack of funds and the fact that such projects were not being insured.

“If these projects are effectively covered by insurance companies, it will be easier to source funds from capital markets and other financial institutions,” he said.

The Isles’ president told the 44th Annual Organization of Eastern and Southern Africa Insurers (OESAI) that brought together hundreds of participants from 30 countries across the world.

He said with the government focusing its development agenda on the blue economy, a number of income-generating groups [within the blue economy] would need insurance covers, calling upon them to expand their service to reach a good number of rural areas.

“Between 2016 and 2021, the insurance sector has grown by seven percent but we believe with the provisions of the new Finance Act and the ongoing large projects, the percentage will increase,” he said.

Zanzibar’s economy, he said, had been largely dependent on clove production but with changes in the global economy, the focus was now on deep seas resources which raises the demand for insurance products.

“As the government, we are working hard to find investors in deep seas and other areas relating to the blue economy. This is why insurance sector is important as we look for investors to partner with in those projects,” said Dr Mwinyi.

Earlier, the board chairperson for the OESAI, Ms Patty Karuihe Martin, said the organisation has been part of the conversations taking place on climate change mitigation and the 2030 Agenda on climate change, through the UNEP PSI.

“Our role, as I see it, is to equip insurers with the tools that they need to assist their clients to create a green environment and reduce carbon emissions and carbon footprint in their businesses,” she said.

She added, “We are doing this by identifying experts to provide solutions to these issues through events such as this conference.”

The Commissioner for Insurance at the Tanzania Insurance Regulatory Authority (Tira), Dr Baghayo Saqware, said the regulator was positioned to facilitate market supervision procedures and the provision of insurance services in the country to all investors.

“We seek to attract and increase investment that will offer solutions to risks in agriculture, fishing and livestock sectors. In addition, we have a specific plan to increase life insurance and health insurance for all,” he stressed.