Insurance in Africa Must Evolve to Become Pillar of Economic Growth, DPM Temasgen Says

Addis Ababa, May 26, 2025 (ENA) -- Insurance in Africa must evolve beyond its current peripheral role to become a central pillar of the continent’s economic development, Ethiopia’s Deputy Prime Minister Temesgen Tiruneh remarked.

The 51st African Insurance Organization (AIO) Conference and Annual General Assembly officially kicked off today in Addis Ababa, Ethiopia.

This year’s theme is “Balancing the Books: Africa’s debt problem - Why does country debt impact insurers?”.

The three-day conference brings together key stakeholders, industry leaders, and policymakers from across the continent to engage in high-level discussions on the future of insurance in Africa.

 

Addressing delegates, Ethiopia’s Deputy Prime Minister underscored the impact of rising global debt and fiscal constraints on the insurance industry.

"For insurers, this is not just background noise. It shapes everything — from the investment climate to asset safety, consumer demand to economic stability."

Temesgen urged participants to use the conference as a moment to reflect, collaborate, and chart a shared path forward.

"Insurance in Africa must evolve. It must become more than a peripheral service. It must be a pillar of economic development. A safeguard for families, a driver of credit, and magnet for investment," he underlined.

 

Moreover, he highlighted Ethiopia’s ongoing transformation under the Homegrown Economic Reform Agenda, describing a country in the midst of significant change.

"We are modernizing our economy. We are improving competitiveness. We are unleashing the private sector. We are building an environment that rewards innovation, encourages trade, and welcomes investment."

Temesgen further stated key initiatives bolstering the financial sector, including the creation of an independent insurance regulatory authority.

Ethiopia is ready to become one of Africa’s most promising insurance markets he said, adding  "our government stands fully behind this journey."