By Rosemary Onuoha
Insurance industry expert has indicated that an economy could be transformed through foreign investments under good leadership.
Deputy Managing Director of African Reinsurance Corporation (Africa Re), Mr. Ken Aghoghovbia, who disclosed this noted that at the backdrop of the foreign investment drive that all economy policy makers must come out with robust risk management plan to boost economic growth.
In a keynote speech delivered at the AIM Digital 2020 Conference in Dubai recently, titled “Re-insuring Investments during and post COVID-19,” Aghoghovbia said that since the outbreak of COVID-19, reinsurers have been actively playing their risk mitigation role in settling the pandemic related claims.
He said: “Many countries have achieved accelerated economic development with a boost from foreign investments. The case of the United Arab Emirates, the largest recipient of Foreign Direct Investments, FDIs, in the Middle East in 2019, somewhat demonstrates how under good leadership an economy could be transformed through investment.
“Sadly, the contribution of these investments to national and regional economies has been adversely impacted by the COVID-19 Pandemic, resulting in massive unemployment, a significant drop in GDP growth rates and a generally reduced level of economic activity.
“Globally, governments, international finance institutions and businesses are required, at this time, to make substantial investments in the economy, to drive recovery. Yet, the uncertain operating environment and the associated risks therefrom, discourage these parties from doing so.
“Indeed, it is at times like these that all parties must come out with a robust risk management plan, which basically involves identifying all the risks associated with an investment and making a decision on how to mitigate them. The plan could be to avoid, accept, limit or transfer the risks.”