#EarlySignals - October 2022
14 October 2022
Our monthly selection of news, quotes and figures that slipped through the radar but could have significant implications
Closure of local shops in Sudan: a strong sign of protest against the economic policies of the regime of General al-BurhanTo protest the lack of wage increase and the sharp rise in taxes on agricultural products, port fees, industry and trade, from 100 to 500%, Sudanese merchants closed several shops and stores on 2 and 3 October, including El Obeid (North Kordofan), El Gedaref and Ed Damazin (Blue Nile). Against a backdrop of high inflation (117% in August), the movement spread to the rest of the country, particularly in the White Nile and Nile regions. The mobilization was triggered by the announcement in August by the Minister of Finance and Economic Planning, Jibril Ibrahim, that the 2023 budget would be devoid of foreign aid. Can the protest last? The violent demonstrations in June show that tensions are still high and could escalate quickly.
“We are proud to help drive insurance adoption, especially among low-income people. 90% of our customers have never had insurance before, but what's surprising is that people actually want to buy insurance! They just don't have easy access to products that really work for them.” CEO and cofounder of Turaco, Ted PantoneThe insurance penetration rate in Africa, at around 3%, is still low compared to the world average of around 7%. The mismatch between the supply of and demand for insurance services is one of the main reasons for this low coverage rate. The emergence of new insurtech startups in Africa aims to fill this gap by facilitating access to and distribution of insurance products, rather than offering insurance as an underwriter. What does this represent? More than 75 insurtech startups are already active in Africa, and half of them are under five years old. In 2020, the African insurance market reached a value of USD 70 billion, with an estimated annual growth rate of 7% by 2025, the highest in the world just after Latin America.