ENP Newswire -
Release date- 25062014 - Are political risks depriving Sub-Saharan Africa of the key ingredient for economic growth?
The Aon Global Power Specialty teamed up with the Aon Credit International Insurance Broker in
Over the last centuries the world has witnessed economic progress that has materially improved the lives of many, especially in emerging markets. Yet almost half the people in the world without access to electricity live in the 48 Sub-Saharan African countries. Whilst this is not a ground-breaking revelation, many of the economic ambitions in the region are harder to achieve in reality and can often lead to turbulence and political volatility. In economies where the growth rate is very high the security of power becomes critical.
Avey also states: 'We observed that multilaterals play a huge role in making projects in this region come to life particularly by being able to offer longer tenures or sometimes cover without certain ministry guarantees that the commercial market would need.'
Silja-Leena Stawikowski, head of political & special risks at
'There are many ambitious projects envisaged for the region, but whilst there is political volatility here investments are not secure without the appropriate political risk cover. Political situations can escalate rapidly as we have seen in countries such as
The majority of underwriters interviewed stated that whilst some major multinational companies have the means to monitor political risk - smaller and maybe less experienced companies do not. This means that it is even more vital for the small and mid-sized companies to engage experts to understand the exposure to political risks and how negligence can have critical impacts on any size of project.
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