In an exclusive interview with INTO AFRICA, BPL Global Directors, George Bellord and Sam Evans, discuss the impact that the current global political and economic climate is having on the demand for trade credit insurance.
The credit and political risk insurance (CPRI) market is well known for its adaptability and being quick off the mark in order to seize new opportunities. In response to recent demand, insurers are now able to offer cover for non-trade financing, project financing, aviation and real estate. That said, Africa is still seen as an area where the obligors are located – indeed, the continent accounts for over US$9.5billion of exposure in BPL Global’s portfolio.
“The high growth rates of many countries across Africa, such as Ethiopia and the Cote D’Ivoire,” comments Evans, “have meant increased levels of trade, as well as infrastructure projects, ranging from energy to roadway construction.”
As a result, financiers are using credit insurance to leverage their positions in such projects and to mitigate the commercial and political risks that can accompany undertaking business in emerging markets.
“We are living in increasingly uncertain times…businesses are seeking further ways to mitigate increased levels of risk with their trading partners as uncertainty grows,” adds Bellord.
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