Allianz CEO advocates greater private sector engagementfor Africa’s prosperity

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By Our Reporter

On March 6 and 7, 2023, the United Nations invited prominent figures, including Delphine Traoré, Allianz Africa’s Regional CEO, to participate in promoting the Sustainable Development Goals (SDGs) in Least developed countries (LDC), in Qatar, Doha. Despite their vast potential, these countries are impacted by numerous factors, including the impact of climate change. Although opportunities abound in Africa, which is home of most of these countries, it is crucial to identify solutions to achieve these SDGs by 2030.

In her opening remarks, Delphine Traoré, alongside Simon Stiell, Executive Secretary of United Nations Framework Convention on Climate Change (UNFCCC UN) and other high-level speakers, emphasized several strengths of Africa, which possesses around 60% of the world’s arable land, has the potential to nourish its population as well as the rest of the world if adequate measures are implemented to assist actors in the rural areas. This necessitates the involvement of governments, supported by businesses, non-governmental organizations (NGOs) and international financial institutions, to confront major challenges, such as those arising from climate risks. In a comparatively more vulnerable continent, these risks are increasingly having catastrophic consequences.

The African continent is highly vulnerable to natural disasters resulting from climate change, with estimated economic costs ranging from 7 and 15 billion dollars annually since 2020. By 2030, this could amount to 7% of African GDP, or 50 billion dollars per year, a significant loss for a population that produce only 3,8% of global greenhouse gas emissions.

Faced with alarming data and the risks they predict, Delphine Traoré advocates for more private sector involvement. With regard to the commitment of the insurance industry, Allianz has taken initiatives to support governments and development institutions, in making insurance more accessible to populations: the InsuResilience project is a concrete example. Launched in partnership with the Ghanaian Government, the Insurance Development Fund, UNDP, and other development organizations, it aims to address the risk of major floods in the country, by enhancing the country’s ability to respond to natural disasters. The project’s main objective is to support 118,000 vulnerable urban households in Greater Accra.

“33 of the 46 Least developed countries are in Africa. But we don’t always see them in the decision making which ultimately impacts them. They are missing from the conversation. Do we know what they need? What is happening on the ground? Adaptation is a daily challenge and the Allianz Africa partnership with the UNDP is a great example of collaboration bringing to the table the countries in Africa impacted by climate change. The UNDP is on the ground, working closely with government then pulling in the private sector and other institutions for climate adaptation in the Least developed countries. This is how we should all work together when it comes to climate adaptation in the countries most affected”, said Delphine Traoré.