Namibia's Finance Minister Ericah Shafudah has emphasized the need for public-private partnerships to address climate risks and strengthen Africa's financial autonomy. Speaking at the 25th anniversary celebration of Namibre, a Namibian reinsurance company, Shafudah highlighted the importance of collaboration between the private sector, government regulators, and international partners. This call to action comes as Africa faces significant development financing deficits.
Shafudah commended Namibre for its commitment to sustainability, citing its adherence to the United Nations' EP finance initiative principles for sustainable insurance and its role as a founding signatory to the Nairobi declaration on sustainable insurable. She noted that these partnerships are crucial in addressing the substantial development financial deficit in Africa, which has worsened due to declining international development finance. As a middle-income country, Namibia is acutely aware of this reality.
The minister stressed that Africa must strengthen its reassurance capacity to finance losses caused by natural phenomena. This requires innovative approaches and initiative to share costs. Shafudah views insurance as a means of sharing risks and believes that building strong, well-capitalized African reassurance companies can enhance financial autonomy. When these companies are globally competitive, more premium income can be retained and reinvested in African infrastructure and jobs.
Shafudah highlighted that capacity building extends across collaborations of local and global institutions. She congratulated Namibre on its 25th anniversary, noting that the company was established to build domestic reassurance capacity, retain financial resources within Namibia, and strengthen the country's reassurance industry. When Namibre commenced operations in 1999, reassurance capacities were sourced outside Namibia, and its establishment was a deliberate intervention to protect sovereignty.
The minister praised Namibre's growth into a pillar of Namibia's financial sector, providing robust life and non-life insurance capacity to the local market and offering reassurance capacities for other markets in Africa. Shafudah noted that Namibre's financial progress is notable, with its premium rising to N$902.8 million in 2025, while its assets reached N$1.1 billion and shareholder equity N$382.3 million.
Shafudah's remarks underscore the significance of Namibre's role in promoting financial autonomy and resilience in Namibia and Africa. By fostering partnerships and innovative approaches, the minister aims to address the pressing issue of climate risk and its financial implications. This approach is expected to contribute to the development of a sustainable and resilient insurance sector in Namibia and beyond.
The collaboration between public and private sectors, as advocated by Shafudah, is seen as a critical step towards building a more robust and sustainable financial system in Africa. As the continent continues to grapple with climate-related challenges, the need for effective risk management and financial planning has become increasingly pressing. Namibre's experience and growth serve as a model for similar initiatives across Africa.
Key points
- Public-private partnerships are essential to address climate risks and strengthen Africa's financial autonomy.
- Africa faces a substantial development financial deficit, which has intensified as international development finance declines.
- Building strong, well-capitalized African reassurance companies can enhance financial autonomy and contribute to the development of a sustainable and resilient insurance sector.
