Insurtech boom: it’s time for Africa

Remember the Shakira song, Waka Waka??“The pressure’s on, you feel it…If you get down, get up…This time for Africa.”

The past couple of years have been brutal for the African continent. We’ve been through Covid-19, and now we’re living through turbulent socio-economic times, with high inflation and rising prices. But despite this, we’re seeing ongoing strong growth in the microinsurance sector as more people see the value of protecting themselves against life’s unexpected curve balls.

According to the IMARC Group’s latest report on global microinsurance trends, the market will grow to more than US$111 billion worldwide by 2027. A sizeable chunk of this growth will take place in Africa, where we’re only just scratching the surface of the demand for financial services products that make people’s lives easier.

And that’s an important point to highlight. The growth of the microinsurance sector is part of a broader surge in access to financial services across the continent that’s being driven by increasing levels of investment into Africa.

Briter Bridges’ Africa Investment Report 2022 paints a picture of Africa as an increasingly viable investment destination, with growing numbers of major deals over the past 12 months alone. It feels impossible when we look at the current challenges, but the fintech space continues to attract more than half the investment.?Fintech in Africa seems to be standing up when the pressure’s up!

The fact is that African consumers are rapidly becoming used to using digital financial products like Mobile Money (MoMo) and payments from the palm of their hand.?We’re excited to see the microinsurance industry’s ability to reach this market with affordable products through these enablers.

And the kicker? In spite of massive growth in investment into the continent in the past few years, all of Africa’s venture capital still only makes up around 1% of the world’s VC money. We’re still in our baby shoes. The phenomenal growth we’ve seen in fintech and start-ups in Africa in the past decade is only the beginning. We are still just exploring the potential of fintech and microinsurance to transform the lives of our people.?

Our continent is hungry for financial inclusion. We’re increasingly ready to take our place at the world’s top economic tables. In spite of the uncertain economic times we’re dealing with, the only way is up. It’s a great time to be in Africa.?Waka Waka!