Insurance power: ESG versus energy access in Africa


Insurance power: ESG versus energy access in Africa

Insurers have the capability to help accelerate coal power phase-outs without compromising electricity access, argues Mikir Shah, CEO of Africa Specialty Risks.

“The topic of environmental, social, and corporate governance (ESG) issues and African energy is always a slightly contentious one, because only 40 percent of the population have access to electricity. Half of that electricity comes from coal-fired power plants, so turning those off would be a disaster on a social basis.”

This was the view of Mikir Shah (pictured), chief executive officer of pan-Africa-focused reinsurance group Africa Specialty Risks (ASR), as he discussed the African insurance market with Intelligent Insurer.

Figures from the International Energy Agency for 2022 show that six hundred million people in Africa lack access to electricity. But the continent’s move to cleaner energy is necessary and already well underway.

Africa Specialty Risks, Mikir Shah, Insurance, Reinsurance, ESG, Pan African, Electricity, Renewable energy, Political risk, Trade credit, Underwritng

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