Sustainable Insurance: The dilemma of Small and Medium Enterprises in Africa

Sustainability has become essential in business, with the financial industry, particularly insurance, expected to drive positive change through Environmental, Social, and Governance (ESG) practices.

Sustainable insurance aims to integrate ESG factors, providing support for green technologies, climate resilience, and ethical practices.

For African SMEs, sustainable insurance offers potential benefits but faces barriers such as limited awareness, high costs, product scarcity, and regulatory gaps.

Addressing these issues requires raising awareness, developing affordable products like microinsurance, and fostering public-private partnerships. By adopting sustainable practices, SMEs can enhance resilience, innovation, and profitability, driving growth in Africa’s economy.