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Analysts Call for Mergers and Acquisition Among Insurers
With the recent Central Bank of Nigeria (CBN) directive that universal banking would be phased out soon, reprieve appears to be on the way of insurance companies who have been apprehensive about their capacity to excel. However while this may be good omen for the stand alone insurance companies, industry watchers opined that the best weapon available to insures is for further recapitalization and more mergers and acquisition. This, according to them, will reposition the industry for greater strength and ability to absorb the post consolidation challenges.
Mr. Wole Olajide, veteran insurance practitioner opined that the increasing foray of banks into insurance, though an indication of public confidence on the industry, an indication of the industry’s viability, the unfolding situation is a clarion call on the insurers to put their house in order.
According to him, the capital base of banks which brought the number of banks to 25, from its weedy and shaky number was what earned it the vast advantage while calling for a forceful merger by operators as a way of consolidating on on-going reforms in the industry.
Olajide warned that if this is not done, the little gains that the consolidation has achieved would be rubbished, adding that the insurance firms profile may not only dwindle but may even be swallowed by the banks which will emerge stronger in their strict adherence to core banking services.
He suggested that rather than having as many as fifty insurance companies, mmany of which are only maintaining big presence in selected cities, insurers should merge to a maximum of ten mega insurers of world ranking.
In pulling resources together, analyst believes that capacity building should be given accelerated boost. This would reposition them to compete effectively.
However, analysts believe that one corresponding area which operators need to focus on is capacity building. Their position is that given the rapid development which the industry has witnessed, enhanced capacity building, may be one of the greatest challenges facing its development.
Joseph Ako, insurance consultant and trainer stated that the rapid growth in the sector needs to be complemented by tools for improved fortunes. He therefore, tasked operators to embark on capacity building through sponsorship of seminar, conferences and other areas that would grow the industry further. He called for an All stakeholders summit with a view to fashioning out sustainable policies for the overall interest of the industry. He stated that there was a greater strength in pooling resources together than having insurance companies who cannot be among the top insurers in the world.
He commended the organizers of the Insurance Future Summit held in Abuja but cautioned that while it may be expedient to sponsor such for a, it was also desirable to evolve increased “home grown” conferences which will put the local operators on their toes.. Ako also called on operators to be more involved in relevant community sponsorship as part of their corporate social responsibility. He explained that the insurance sector has not been very prominent in this regard, a situation which as placed insurance business as superficial before the public who correspondingly view their services as undesirable.
According to industry watchers, the new financial strength of operators makes it mandatory for more branches to be established. If new branches are thus set up to match the growth, they content that the situation calls for customized training and development program which will not only make operators to be attuned to current market trends but also make their services to meet the growing demands of the insuring public.
He advised operators to aggressively pursue capacity building as it remains the only weapon needed to sustain the accompanying increased returns on investment, enhanced profit margins and strategic service delivery.
Corroborating, The insurance consultant challenged operators to embrace the dynamic innovations and service delivery platform of the banks. Unless this is done, he said, banks may swallow up 50percent of insurance core services, especially against the background of rising acquisition of insurance firms by banks and the existing incursion of banks into some traditional insurance businesses.
To be able to manage the huge demands, which the post-consolidation will herald in the sector; emphasizing that capacity building poses a big challenge in meeting sustainable capital adequacy, human resources development and upgrading of information Communication Technology (ICT).
Still on strategic alliances, this analyst explained that such would allow for uniform services such as the one being rendered by banks presently through various services such as e-banking.
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Afreximbank and Ecobank Join Forces to Boost Trade and Compliance Across Africa
African Export-Import Bank and Ecobank Group have embarked on a collaboration aimed at simplifying trade and compliance for businesses in Africa by integrating Ecobank’s Single Market Trade Hub and Afreximbank’s MANSA Digital Repository Platform.
With the collaboration, African businesses will benefit from seamless shared services across the two platforms, with users of the Single Market Trade Hub able to easily leverage MANSA’s comprehensive database for efficient know-thy-customer (KYC) and customer due diligence (CDD) checks while MANSA platform users would, in turn, be able to directly connect to the Single Market Trade Hub to explore trade opportunities to expand their businesses across Africa.
The Ecobank Single Market Trade Hub connects registered businesses across Africa on a single platform, helping them benefit from opportunities in the unified market of 1.4 billion people created by the African Continental Free Trade Agreement (AfCFTA).
It serves as a one-stop repository for the AfCFTA by providing small and medium-scale enterprises (SMEs) and corporates with insights about the agreement while its online match-making feature enables importers and exporters to upload their profiles and showcase goods and services they offer, or wish to source, with the aim of finding partners within Africa.
Once a match is found, connections are made via the platform and the transaction can be concluded leveraging on Ecobank’s trade and payment solutions in 35 African markets.
The MANSA Digital Repository Platform, or MANSA, is a one-stop-shop for due diligence matters on all African entities. As a centralised digital repository, MANSA seeks to eliminate information asymmetry and to increase intra-African trade and trade with the rest of the world.
It drives and promotes good governance culture among African SMEs and creates visibility for their businesses while also supporting African entities to expand, diversify and add value to their export products at both the local and international levels. Entities onboarded unto MANSA are allotted an Africa Entity Identifier (AEI) code which enables them to leverage other Afreximbank products and initiatives.
MANSA is also a key digital solution at the Africa Trade Gateway (ATG) marketplace which houses a suite of digital platforms designed as a single window to enable Afreximbank better deliver on its mandate, providing critical services to support and promote intra-African trade and the implementation of the AfCFTA. The platform enables African entities to accelerate their business activities at the ATG marketplace by working with verified information on trusted counterparties.
The new collaboration is, therefore, enabling Ecobank and Afreximbank to provide a central solution to the key challenge of KYC compliance and access to business across 35 countries in Africa. The improved interoperability is expected to further streamline cross-border trade and compliance in Africa, fostering greater financial and economic integration on the continent.
Afreximbank is a pan-African multilateral financial institution established to finance and promote intra- and extra-African trade.
Ecobank Group is a leading private pan-African banking group with unrivalled African expertise.
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Leadway Assurance Pledges Transformative Role to SMEs
Leadway Assurance said it has chosen to go beyond risk underwriting to play the role of transformative partner for Small and Medium Enterprises (SMEs) in the country.
The underwriting firm played this role by empowering SMEs with practical strategies on how to navigate risks inherent in Yuletide season.
Leadway recently organized a webinar session for SMEs titled, “Driving Increased Sales During the Festive Season.”
Speaking on the reason for the session, the underwriting firm said it realized that as momentum into the 2024 festive season continued, businesses, especially small and medium enterprises (SMEs), face paradoxical realities of increased sales opportunities and consequent cocktails of business risks.
It said recognising the fact that with consumer spending and holiday making increasing businesses for SMEs, there were the possibilities of risk from these spikes in commercial activities such as – theft, accidents, burglaries, fire outbreaks, frauds, and system failures.
Against this backdrop Leadway said it has reaffirmed its position as a transformative partner to SMEs by empowering businesses with practical strategies for navigating the complexities of the season.
“This aligns with the brand’s mission to deliver robust risk management and business solutions to bolster economic growth, Head of the Retail Division at Leadway, Umashime Oguzor-Doghro said.
As connected to insurance, Oguzor-Doghro said: “Insurance was often seen as a reactive tool, but at Leadway, we position it as a strategic asset. With our competitive risk management solutions—spanning property, transit, and employee coverage, we enable businesses to operate with confidence, knowing they are protected from the unforeseen.
What sets us apart is our free advisory service, which ensures businesses are fully equipped before they even take up our insurance products.” he added.
In addition to risk management, Oguzor- Doghro said the webinar championed collaboration as a catalyst for success, adding that Leadway’s partnerships with event managers and SME stakeholders aim to ensure seamless operations during the festive season, reinforcing the company’s role as more than just an insurer but a reliable business ally.
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Mastercard, MTN, and Arifu Launch Digital Skills Program for African Small Businesses
Mastercard Center for Inclusive Growth, MTN Group Fintech and Arifu have partnered to support about one million small businesses in Cote’ D’Ivoire and Uganda, to digitize their operations, increase the use of digital financial services and access digital marketplaces through the MoMo Coach chatbot.
This program, part of the Center’s global Mastercard Strive initiative, aims to enhance the resilience and growth of small businesses by providing essential digital skills. It is one of the ways Mastercard Strive has disseminated chatbot-ready business building content for small businesses in the region, which is currently also available in Kenya and Nigeria.
Small businesses in sub-Saharan Africa, especially those impacted by the pandemic, have faced significant barriers in adopting digital tools. As of December 2022, only 27.65% of businesses in sub-Saharan Africa had adopted digital tools to enhance their efficiency, showing a slight improvement from 19.44% in August 2020. A lack of relevant skills continues to limit their growth and access to essential financial services. MoMo Coach addresses these gaps by providing free, accessible upskilling content via popular messaging platforms.
Supported by the Mastercard Center for Inclusive Growth and delivered by Caribou Digital, this program equips small businesses with digital skills, enabling them to adopt digital tools, access capital, and engage more effectively in digital marketplaces. The program aligns with Mastercard Strive’s broader goal of reaching 18 million small businesses around the world to go digital, get capital, and access networks and know-how.
“Small businesses are vital to Africa’s growth and create opportunities for a more resilient and inclusive regional economy. We are delighted to catalyze a partnership between MTN Group Fintech and Arifu to equip almost one million small business owners with the digital skills and knowledge essential for thriving in an increasingly digital economy, setting them up for success.” said Subhashini Chandran, Senior Vice President of Social Impact for Asia Pacific, Europe, Middle East and Africa
The MoMo Coach solution, powered by Arifu’s Grasp Platform, uses mobile messaging to deliver micro-learning experiences. It is accessible across multiple channels, including WhatsApp, Telegram, Facebook Messenger, SMS and MoMo. This gives small business owners and entrepreneurs flexibility in accessing practical, actionable tips to unlock growth opportunities in the digital economy.
Serigne Dioum, CEO of MTN Group Fintech, further adds: “Empowering small businesses with digital skills is key to driving inclusive growth in Africa. Through MoMo Coach, we are unlocking opportunities for entrepreneurs to thrive in the digital economy, strengthening communities, and shaping the future of business across the continent.”
The program has been rolled out in Côte d’Ivoire and Uganda, reaching over 930,000 MTN customers, merchants, and agents, with more than 75,000 small business owners accessing free digital courses and over 45,000 actively engaging with MoMo Coach. Courses offered include “How to Start Your Business,” “Money Management,” and “Grow and Secure Your Business.” These courses are based on insights derived from MoMo merchants and agents, and they address key challenges like affordability and access to relevant business knowledge—enabling small business owners to navigate the digital landscape.
Aminata, a 31-year-old business owner from Gôh-Djiboua, Côte d’Ivoire, is one of the many beneficiaries of MoMo Coach. Selling shoes and clothing since 2022, she says: “There’s a lot of competition, but MoMo Coach helps me sell better. Before, I used all my profits to buy new stock, which left me using my capital for expenses. Now, I split my profits: one part for business growth, another for expenses, and some savings for other projects.” She has also started using WhatsApp to increase her sales, noting: “My income has increased. When I post my goods, I sell more.”
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