By Dickson Pat
Afrexminsure, the wholly-owned Specialty Insurance Subsidiary of African Export-Import Bank has announced its onboarding of Oando Plc as one of its strategic clients, further strengthening the business relationship between Oando and the bank.
According to Afreximbank in a statement made available to AljazirahNigeria says with Oando on board its clientele portfolio, this new development aligns with Afreximbank’s financial support to the company, with critical risk management solutions, ensuring that the bank’s investment in Oando Plc’s operations in Nigeria is safeguarded through tailored Specialty Insurance Solutions.
By mitigating operational and geopolitical risks, the collaboration would enhance Oando’s resilience, promote sustainable energy development and reinforce Afreximbank’s commitment to economic growth and regional stability in the trade ecosystem.
Commenting on the partnership, CEO and Principal Officer of AfrexInsure, Jonas Mushosho said that the strategic collaboration between Oando and AfrexInsure will help promote local content in Africa’s oil and gas sector.
“The collaboration, which also underscores a shared commitment aimed at fostering economic empowerment and contributing to the sustainable development of Africa’s natural resources, will also strengthen the African insurance sector by retaining premium flows within the continent and fostering Africa’s financial sustainability,” he said.
Mushosho, who noted that Oando Plc and Afreximbank had established a significant business relationship aimed at enhancing trade development in Africa’s energy sector, added that, many multinationals doing business in Africa face high levels of risk in the current volatile and uncertain environment.
Greater availability of affordable trade and trade related specialty insurance solutions could mitigate those risks and encourage firms to engage in enhanced industrialisation and export development activities.
“This win by AfrexInsure shows how we are supporting the growth of trade and development in Africa by providing required Insurance management services, giving investors the confidence to make investments in Africa. By using African securities, specialty insurance premiums raised in Africa are retained on the continent and are used to contribute to its overall trade and economic development,” he said.
Commenting on this announcement, Group Chief Executive, Oando Plc, Wale Tinubu, said that the company has a longstanding relationship with Afreximbank where it have seen the Bank support our vision for energy in Africa, not only with essential financing but also with invaluable guidance and advisory support.
“Following our recent acquisition, a tailored risk identification and mitigation approach is paramount. We are confident that our collaboration with AfrexInsure will provide the necessary oversight to ensure both the adequacy and comprehensiveness of our risk management strategy,” he said.
He noted that Afreximbank’s partnership with Oando has included a pivotal role in financing the company’s strategic initiatives in Nigeria’s oil and gas sector.
