At the G20 meeting last week, Prime Minister Theresa May announced an ambitious package for development and investment in Africa including a new London Centre for Global Disaster Protection, creating a link between UK expertise and developing nations to promote risk management and investment.
The plan includes an offer of up to £30 million in investment to help Africa build a stronger financial, insurance and banking sector and provide expert scientific advice for risk management – enabling a better understanding of risk and more access to appropriate insurance solutions.
This will attract more investment and innovation throughout Africa, and build a strong partnership with the City of London, setting up opportunities for trade and for London to become a finance hub for Africa.
The protection gap – the difference between economic losses post-disaster and insured losses – in developing nations is over 95%, compared with high-income countries where almost half of all losses are absorbed by insurance and reinsurance.
As a result, when natural disasters strike, the lack of early action which can halve the cost of disasters, unravels progress made towards development and force more people into poverty.
The development package will be based on three key principles; building a partnership with Africa, large-scale creation of jobs, a commitment to collaborate with others including the private sector to stimulate investment.
To absorb new entrants into the labour force, 20 million new jobs will need to be created every year until 2035 throughout Africa.
Speaking to the G20, the Prime Minister commented that if young people remain permanently excluded with jobs and opportunities always out of reach, then destabilising migratory patterns will persist – with extremist causes and criminality more likely to thrive.
A pilot programme of up to £8 million is underway – involving grants to help fund insurance cover for essential public services like health, nutrition, water, education, sanitation and hygiene.
Job creation throughout Africa will provide benefits of increased security and stability both in Europe and in Africa; helping to generate jobs and economic growth will help to stem the flow of economic migrants to Europe, while fostering increased opportunities for trade and prosperity.
