Allianz urges insurance review, business continuity for West Africa, Sahel region 

• On back of electoral outcomes

• Nigeria, Côte d’Ivoire dominates region’s businesses

Ben Eguzozie

Businesses in West Africa and the Sahel, largely notorious as the epicentre for coup d’états and terrorism, are advised to implement forward planning, robust business continuity strategies, increased security measures and review insurance policies this year, considering the unprecedented super-cycle of elections in 2024, with almost half the world’s populations heading to the polls, according to a new report by Allianz Commercial.

In particular, the Allianz report emphasised the significant security concerns in many territories with wide-reaching consequences.

The report highlights the significant security concerns in many territories, emphasising the wider-reaching consequences of electoral outcomes on foreign policy, trade relations, and supply chains.

Africa has been making headlines due to geopolitical risks, with recent coups in Niger and Gabon, plus earlier ones in Guinea, Guinea Bissau, and Mali; and a civil war in Sudan leading to the largest internal displacement crisis globally.

Allianz warned that with the year 2024 witnessing numerous elections across Africa, the continent’s political stability faces both challenges and opportunities. West Africa will host the second most elections this 2024, with those in Burkina Faso, Ghana, Guinea Bissau, and Mali.

Nigeria dominates businesses in the West Africa region, with its firms accounting for 9% of the region’s top 250 companies as of 2023. Côte d’Ivoire, a regional neighbour, is progressing up the table, according to a recent survey of businesses in West Africa.

Additionally, the Allianz Commercial report highlighted the Sahel region in sub-Saharan Africa as the epicentre of terrorism, with Burkina Faso being the most impacted country. The report said demand for political violence insurance coverage is on the rise, particularly among businesses with multi-country exposures.

It advised businesses to implement forward planning, robust business continuity strategies, and increased security measures in order to protect their operations, property and people.

The report also emphasised the importance of reviewing insurance policies to ensure coverage for risks such as strikes, riots, and civil commotion.

The Allianz report provides valuable insights into the intersection of elections, geopolitical risks, and business continuity in Africa.