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From Relief to Readiness: How African Insurers Can Change the Way We Prepare for Disasters

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By Sufian Ahmed

In 2015, Ethiopia experienced the worst drought in decades. It affected nearly 10 million people. It is sometimes called the forgotten crisis. But forgotten by whom? As the Finance Minister, I was forced to take funding from health and education and other projects that would have helped our country grow more prosperous and resilient. Finance ministers across Africa know the feeling well. A climate disaster that turns into a fiscal crisis can dismantle a country’s growth plans overnight. African insurers are uniquely placed to address that escalating risk and protect vulnerable populations and the continent’s growth trajectory. This is why the 51st African Insurance Organisation (AIO) General Assembly in Addis Ababa—my home city—lands at exactly the right moment.

Climate Risk Is Fiscal Risk

The AIO was set up over fifty years ago when most African markets were young. It became the natural platform for African insurers, brokers, reinsurers and regulators to speak with one voice. The newly independent countries could not have foreseen that half a century later, one of the biggest risks facing the continent would be related to climate. Africa has emitted less than four percent of the world’s greenhouse gases, yet climate-related shocks already cost us US$7-15 billion every year and could reach US $50 billion by 2040.

Treasuries pay twice for each drought, flood or cyclone: first through emergency expenditures and then through slower growth as budgets are raided to close the gap. Emerging data show how skewed the disaster financing model remains. In 2022, less than 2% of international crisis financing was agreed in advance—and only a tiny portion of that reached low-income countries. Pre-arranged financing accounted for only 0.4 percent in Sub-Saharan Africa —about US $65 million of US $14.7 billion of total international crisis financing.

How we pay for shocks shapes how we prepare for them. If funds appear only after a disaster, we build institutions of relief rather than protection. What we need instead is finance that has been arranged and agreed ahead of shocks, and that is able to flow predictably and quickly where it is needed most.

A Call to Africa’s Insurers: The Three P(iece)s

Although Africa did not create this crisis, African expertise and innovation hold the pieces to help solve it – and our insurance industry must lead the way. 

I challenge every African insurer to step into the gap through the ‘three Ps’: parametric insurance, public-private partnerships and property-catastrophe insurance.

Parametric insurance: We don’t have to let the disaster run its course to tally the damage. Governments are looking for insurance that pays automatically when rainfall, wind speed or crop yields cross an agreed threshold. Last year, regional pools and development banks placed US $2.8 billion of such cover worldwide; cumulative payouts have surpassed US $800 million. No mechanism better illustrates continental momentum than the African Risk Capacity pool, which now protects fifteen countries across the continent. The African Development Bank has amplified that effort by mobilising donor money to subsidise premiums.

Public-private partnerships: We need better agricultural insurance. In Senegal and Kenya, the state splits the premium with the private sector so that smallholders can cover crops and livestock, unlock seasonal credit and invest with confidence even as weather patterns grow harsher. Those schemes are as much rural-development tools as they are safety nets.

Property-catastrophe insurance: We need protection for public assets. Most African roads, schools and power lines remain uninsured. Bringing them under domestic – or regional – markets would cap the sudden reconstruction bills that so often derail capital investment plans.

Through these ‘three Ps’, Africa’s insurers will not only play an important role in managing climate risk – they’ll help redefine fiscal resilience for the continent.

Bridging Insurance and Public Finance

The appetite is there. In Africa Insurance Pulse 2024, the AIO asked senior executives from 22 leading insurers, reinsurers and brokers about their role in resilience. Ninety-five percent said the industry should and can promote disaster risk reduction.

We need to build ‘bridges’ to build bridges. As someone who has sat on the other side of the table, I strongly encourage insurers and financial actors to work more closely with Ministries of Finance and other government departments. Together, we can integrate risk transfer and pre-arranged finance into national budgeting and public investment planning, particularly in high-risk, shock-prone sectors.

But, Africa’s actuarial, regulatory, and reinsurance capacity must continue to be strengthened and scaled to foster innovations that match the continent’s diverse risk profile.

Why the Addis Conference Matters

The AIO Conference and Annual General Assembly are where technical ideas can transform into resilience. The agenda already points the way: for example, the African Development Bank will present the Africa Climate Risk Insurance Facility for Adaptation, a test case for putting the ‘three Ps’ on a continental footing.

If insurers seize these opportunities, they will do more than protect budgets after a drought; they will tilt incentives toward risk reduction long before the rain fails. Pre-arranged finance cannot prevent the next disaster, but it can help prevent a drought from becoming a crisis. The drought will come; the question facing the AIO this week is whether it will take the lead.

Sufian Ahmed is former Minister of Finance of Ethiopia (1995-2015) and a Board Member of the Centre for Disaster Protection. This op-ed is based on a keynote speech delivered at the 51st AIO conference and AGM.

China’s Infrastructure Revolution: Why West Fears East

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By Seringe S.T. Touray

In Beijing, as we transition into Spring, temperatures fluctuate – a contrast to the invariable political climate governing China’s 23 provinces and other administrative divisions. Out here, the contrast between local realities and mainstream media narratives couldn’t be more obvious. An example of this juxtaposition can be seen in the coverage of China’s Belt and Road Initiative (BRI).

The BRI symbolizes one of the most ambitious infrastructure projects in our modern history, and, in my opinion, the most ambitious of all. Exactly how ambitious? Depends on who you ask, and what the angle is. Now, let’s take a closer, unfiltered look.

Launched in 2013 by China’s Head of State, Xi Jinping, the initiative plans a connection between Asia, Europe, and Africa through roads, railways, ports, and other infrastructure investments. Essentially, it aims at distributing trade and economic opportunities globally.

To many, this lays out a new world order guided by China, a communist region of Asia often seen as a rival of the West, thus welcoming a more cautionary rather than positive assessment of the BRI. But are there legitimate concerns about the project? Or are criticisms clouded by anxiety over what some economists, even in the West, describe as a future rapidly tilting in favor of Chinese world dominance?

With over 140 countries participating as of 2024, the BRI encompasses 75% of Earth’s population, and over half of global GDP. To quote a portion of the official descriptions of the ruling Chinese Communist Party (CCP), “The Belt and Road Initiative is a bid to enhance regional connectivity.”

When President Xi introduced the BRI in Kazakhstan in 2013, what started as an idea to revive the ancient Silk Road trading routes evolved into something far more ambitious, despite minimal coverage from the West. But back in East Asia, on this eastern side of the Eurasian continent, Xi’s vision to connect China with the rest of the world through land and sea routes quickly took root, drawing nourishment from its five-thousand-year history as it evolved into the modernized concept it is today.

For those unfamiliar with the original Silk Road, it was a sophisticated network of trade routes that connected China with parts of Asia, the Middle East, and Europe over 2,000 years ago. And it wasn’t just about silk—spices, tea, gold, and even ideas and cultures moved along these routes, shaping much of early global exchange.

Now, there’s just a little twist, if I may say. The “Belt” in Belt and Road isn’t really a belt, neither is the “Road” an actual road—not in a literal sense, or traditional sense for that matter. Whereas “Belt” refers to overland trade corridors that stretch through Central Asia to Europe, the “Road” is actually a series of maritime shipping lanes running through Southeast Asia, the Indian Ocean, and on to Africa and Europe. But confusing names aside, the idea is bold, with China eager to knit together infrastructure, trade, and cooperation on a global scale.

Since its introduction, the Belt and Road has expanded to six major corridors. The most notable is the headline-grabbing $62 billion China-Pakistan Economic Corridor, among others connecting Western China, Russia, Mongolia, Southeast Asia, and beyond.

Separately, ports are being constructed or upgraded from the South China Sea to the Mediterranean. That’s not all. China has also busied itself with what it calls the Digital Silk Road focused on building digital infrastructure and expanding technology cooperation among participating countries. This came side-by-side with the development of a Health Silk Road for health cooperation and medical infrastructure also among participating countries.

Additionally, the BRI rolled out the Ice Silk Road for Arctic shipping routes and cooperation in the polar regions, mainly with its longtime geopolitical ally, which, according to the world map, spans both Eastern Europe and Northern Asia. That’s right – Russia.

By 2017, the Communist Party under President Xi officially incorporated the BRI into its national policy, adding a target completion date of 2049. It’s worth mentioning that this would coincide with the 100th anniversary of modern China. This is also to say, the BRI isn’t just another infrastructure project; more than that, it’s become a central part of Xi’s long-term global strategy, strictly guided by his worldview.

Much of the misinformation, or perhaps innocent misconceptions, found in some mainstream coverage originates from widespread speculation. There appears to be increasing ambiguity regarding the sources of finance for this long-term megaproject, with unsubstantiated mainstream media-propelled rumors speculating about the drying out of funds, leading to project dead ends. In reality, funds for the extensive projects are funneled through a variety of institutions, namely the Asian Infrastructure Investment Bank with over $100 billion in capital, the $40 billion Silk Road Fund, and China’s policy and commercial banks.

The Centre for Economics and Business Research projected that the BRI will boost world GDP by $7.1 trillion yearly by 2040, nine years before its scheduled completion. Even the World Bank estimates increased trade flows and reduced costs for member countries through the BRI.

China’s approach to global infrastructure development through the BRI stands in notable contrast to Western models, whose development aid often comes with stringent political and economic conditions. The Chinese have instead introduced a “non-interference” policy in domestic affairs and present the BRI as a mutually beneficial economic partnership – an approach which has proven particularly attractive to developing nations that have historically felt marginalized by Western-dominated international institutions.

Oftentimes, China’s distinctive governance model is misunderstood in the West. A clear example of this is the broad Western-driven perception of China as a one-party state, much like the perception many have of the Russian Federation, under President Vladimir Putin.

The truth is, the Chinese political system currently includes up to eight legally recognized non-Communist parties participating in the political process, alongside China’s ruling Communist Party. The huge difference? Rather than compete for power – a move that often leads to distortions of reality and manipulations in a battle of narratives to garner support – Chinese political parties participate in what’s called “multiparty cooperation and political consultation” under CCP leadership. In essence, they each provide input on policy decisions and serve specific social and professional constituencies, functioning more as advisory bodies than adversarial opposition parties in the Western sense.

Another key difference between China and Western countries lies in their media philosophies. While some Western media organizations take an approach of constructive journalism (i.e. emphasis on solutions and positive developments), this approach seems secondary to the dominant model. What’s the dominant model? This oftentimes prioritizes conflict, controversy, and critical perspectives. This is, to be fair, partly driven by commercial realities and democratic ideals. Here, Western journalism adopts the role of a watchdog, hence ‘watchdog journalism,’ and deems its probing and confrontational approaches as essential to achieving greater transparency and accountability in a democracy.

Compare this with China’s approach, and you’ll notice a difference. Here in China, the media are largely state-directed in a way that promotes national unity, social harmony, and developmental achievements. Moreover, this direction aligns with the government’s own agenda. The West often dismisses this philosophy as propagandist in nature. Yet, for the overwhelming majority of Chinese people, this model plays an important role in fostering stability in China by reinforcing a shared national vision.

These differences do not end there. They extend to public attitudes towards leadership. I was struck by the widespread respect the Chinese express for President Xi during my visits to both Beijing and Anji. The first thought that sprang to my mind was the contrast between this and the polarized political climates seen in countries like the U.S. and U.K., where disrespect for leaders in many instances depends on party affiliation. Western media likes to portray Chinese citizens as resentful of a repressive government. However, my conversations with Chinese people from different walks of life reveal genuine pride, both in their leadership and national progress.

Personally, I find that these inconsistent portrayals stain the record of some Western media that have also frequently labelled the BRI as “failing,” “collapsing,” or a “debt trap.” This attitude can also be observed in a wide range of content disseminated across the internet, not the least of which is the widely viewed 2024 YouTube video titled ‘How China’s Belt and Road Initiative Collapsed.’ The video uses dramatic language and imagery, depicting “half-built ghost projects” especially across African nations, and other participating nations “drowning in debt.” They further claim that related protests are “exploding” on different continents.

These frame the BRI as a geopolitical strategy rather than a development effort. But the fact of the matter is, it’s not exactly a zero-sum-game. Both can be true regarding China’s aims, so long as it aims in good faith. Such negative coverage invokes phrases like “setting the stage for a new cold war,” casting China’s infrastructure investments as tools of control.

A major concern associated with the BRI, according to some experts from the West, is the ‘risk’ it poses to its member countries, where experts fear such countries, mostly African, will grow more dependent on China in a power imbalance due to unsustainable debt. To support this theory, a 2023 study by AidData, which was conducted with the World Bank, Harvard Kennedy School, and the Kiel Institute, claimed that China has already issued $240 billion in emergency loans to 22 countries between 2008 and 2021, mostly to assist those struggling with BRI-related obligations.

The report warns that the lack of transparency over this $240 billion bailout could have global ramifications.

Here’s what’s interesting: this Western portrayal clashes with research and perspectives within China. In my discussions with the Chinese – and this includes government officials, scholars, as well as locals in Beijing and Anji – the BRI is consistently seen as a means of sharing prosperity across the world, particularly with member countries. A means of fostering mutually beneficial development. Even scholars like Deborah Brautigam of Johns Hopkins University challenge the “debt trap” narrative. In Brautigam’s own findings, she notes that “Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any country.”

Here’s the stranger bit. When countries fail to repay loans from Western nations or institutions, they sometimes do face debt restructuring, loss of economic sovereignty through imposed policy reforms, credit downgrades, and reduced access to future financing. In some cases, they are pressured into privatizing or relinquishing control of key national assets.

And even the Western borrowers are not immune. You might recall that during its debt crisis, Greece was compelled by the EU and IMF to privatize major assets, including handing over operations of 14 regional airports to Germany’s Fraport AG to secure bailout funds (Reuters, 2015).

Similar scenarios have affected some African nations. Let’s consider Tunisia, for instance. The North African country also faced demands to cut its subsidies and privatize some of its state-owned firms, sparking public backlash over fears of foreign control (Al Jazeera, 2023). The point of these examples is not whataboutism. The point is that the same mechanisms Western countries enforce when borrowers can’t repay loans are the very mechanisms they accuse China of enforcing, as if such enforcements are unheard of, when they’ve long been standard practice.

You might notice that mainstream media coverage frequently distorts the BRI’s scope through subtle framing. Reports describing the participation of “only” 140 countries obscure the fact that this represents about 75% of the world’s population—an extraordinary diplomatic feat. Criticism of the BRI’s “slow” progress ignores that it launched in 2013 with a 2049 target, making it a long-term vision. Yet it’s judged as though it should have revolutionized global infrastructure in just over a decade—an expectation not applied to Western-led efforts.

One might speculate that this pattern of negative framing reflects broader anxieties about China’s rise. Why? Let’s shift to Goldman Sachs – the global financial giant that projected China surpassing the U.S. as the largest economy by 2035-2040. And if that’s not enough reason for anxiety, President Xi himself has laid out China’s expectations, which see 2049, the 100th anniversary of the People’s Republic and the completion date set for the BRI, as the year China fully emerges as a modernized and socialist superpower. All this, alongside China’s growing regional influence in the Indo-Pacific.

To squeeze in a final example, China’s rapidly-growing BYD provides yet another case study portraying some western media distortions of the economic achievements of the Asian country. While there’s a strong presence of global brands like Toyota, Mercedes, Volvo, BMW, Audi and the like, they’re hardly any match for the rapid growth of BYD electric vehicles marking their territory on Chinese streets.

2024 saw BYD capturing a whopping 34.1% of China’s new energy vehicle market. By comparison, Tesla held only 6%, which isn’t terrible considering Musk’s company shares the local market with other competing global car brands, but with Tesla declining to 5.6% by early 2025, there’s much concern for Elon Musk to ponder as his company strives to stay relevant in Asia. Yet, in spite of this, some Western narratives remain steadfast in continuously underestimating Chinese innovation.

You might recall that back in November 2011, Musk laughed dismissively when a Bloomberg reporter asked him questions about what could become a future tight race between Tesla and BYD, which was slowly taking off at the time. “I don’t think they have a great product. The technology is not very strong,” Musk said, further declaring that Chinese manufacturing couldn’t compete on price.

As time has taught us exactly fifteen years later, Musk’s claims couldn’t be further from the truth. Yet similar dismissive attitudes to this day continue to shape some Western coverage of Chinese economic advances.

To throw in a couple of notable testimonials in favor of the BRI, Malaysian Prime Minister Mahathir Mohamad joined many developing countries who have welcomed the initiative for its addressing of infrastructure gaps and strategy for fostering growth. Mohamad praised it as a stringent mechanism for poverty reduction in landlocked Central Asian countries. Perhaps even more notably, the UN Secretary-General, António Guterres, also described the BRI as a vehicle for accelerating the UN Sustainable Development Goals.

So far, the BRI has attracted over $1 trillion in investments across more than 150 partner countries, and has delivered railways, ports, highways, and digital infrastructure at a scale unmatched by Western-led efforts (World Bank, 2023; Council on Foreign Relations, 2024).

To those raising concerns over the ecological impact of BRI projects, China has pretty much remained transparent regarding its renewable energy investments, with President Xi publicly pledging to end all overseas coal financing. In fact, during my visit to Beijing, I’ve seen firsthand China’s sustainable commitment. Its international training centers, strategic planning, and discussions tailored to partner countries were on display at the inauguration of the Anji International Media Training Base on May 15, which I attended at the invitation of the government. The emphasis? China’s globalist vision and ecological civilization.

Remember, even in the West, China is still widely considered to be the global leader in renewable and green energy. It’s also the largest producer of renewable energy capacity.

To conclude on a more personal note, I had the pleasure of climbing one of the seven wonders of the world – the Great Wall of China. While this isn’t relevant to the BRI, it symbolizes something noteworthy: the value of experiencing anything firsthand, or in this case, China’s achievements following a five-thousand-year history of its own making, brings about something of a spiritual awakening in a world engulfed in a geopolitical battle of narratives. I’m not asking you to take my word on China’s vision or its potential for connecting the world through ambition; rather, I encourage you to approach geopolitics with an open mind and seek diverse sources of information while questioning dominant narratives – especially when they seem to consistently maintain existing power structures.

Seringe S.T. Touray is Editor-In-Chief, The Fatu Network

Name: Eyaderadis Tera

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2. Education: (የት/ት ደረጃ)Degree in EDPM

3. Company name: (የመስሪያ ቤቱ ስም)Ta Family Beauty Salon

4. Title: (የስራ ድርሻህ)Owner

5. Founded in: (መቼ ተመሰረተ)2024

6. What it does: (ምንድነው የሚሰራው)Provides hairstyling, makeup, nail work services

7. Headquarters: (ዋና መስሪያ ቤት)Dawro

8. Start-up capital: (በምን ያህል ገንዘብ ስራዉን ጀመርሽ/ክ)250,000 birr

9. Current capital: (የአሁን ካፒታል )Growing

10. Number of employees: (የሰራተኞች ቁጥር)3

11. Reason for starting the business: (ለስራው መጀመር ምክንያት)Special interest in beauty

12. Biggest perk of ownership: (የባለቤትነት ጥቅም)Seeing customers enjoy

13. Biggest strength: (ጥንካሬህ/ሽ)Not giving up

14. Biggest challenge: (ተግዳሮት) Lack of Finance

15. Plan: (እቅድ)Opening special beauty training workshops

16. First career path: (የመጀመሪያ ስራ)None

17. Most interested in meeting: (ማግኘት የምትፈልጊ/ገው ሰው)Haile Gebreselassie

18. Most admired person: (የምታደንቂ/ቀው ሰው)My mom

19. Stress reducer: (ጭንቀትን የሚያቀልልሽ/ለህ) Spending time with my family

20. Favorite book: (የመፅሐፍ ምርጫ)The Alchemist” by Paulo Coelho

21. Favorite pastime: (ማድረግ የሚያስደስትህ) Trying new hairstyles and makeup techniques

22. Favorite destination to travel to: (ከኢትዮጵያ ውጪ መሄድ የምትፈልጊ/ገዉ ስፍራ)Dubai

23. Favorite automobile: (የመኪና ምርጫ)None

Girma Yifrashewa wins prestigious BraVo International Music Award

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Renowned Ethiopian pianist and composer Girma Yifrashewa has been honored with the 7th International Professional Music Award BraVo, one of the world’s most prestigious accolades in classical music. The award ceremony, dedicated to the field of classical art, was held on the historic stage of the State Academic Bolshoi Theater in Moscow, Russia, drawing a global audience and celebrating musical excellence from across continents

The BraVo Awards, recognized as Russia’s largest and most significant international music prize, annually brings together leading figures in music, opera, and ballet. This year’s event featured exceptional artists from Russia, India, Egypt, Serbia, Ethiopia, and beyond, each representing the pinnacle of their respective traditions. Girma Yifrashewa’s selection as an award recipient marks a momentous achievement for both Ethiopia and the African classical music community at large

Girma Yifrashewa is no stranger to international acclaim. A graduate of the Sofia State Conservatory in Bulgaria, the Royal Academy of Music in London, and the Graduate School of Music and Theater in Germany, Girma has built a career that bridges continents and cultures. His repertoire is as diverse as it is profound, encompassing iconic works by European classical composers, Ethiopian folk melodies, and his own original compositions that blend classical, blues, ethno-jazz, and Abyssinian sacred music

His performances have captivated audiences worldwide, expanding the creative horizons of music lovers from Africa to Europe and beyond. By intertwining Ethiopian musical traditions with classical forms, Girma has carved a unique niche in the global music scene, earning respect for both his technical mastery and his innovative spirit.

In an interview following the award, Girma reflected on the significance of the BraVo Award: “The significance of this award, particularly from Russia, is a great recognition in the classical music field. Classical music isn’t a prominent tradition in Africa, but Russia holds one of the highest positions in the world in this genre. I believe this is an acknowledgement for both my country and myself.”

He emphasized that the award is not just a personal honor, but also a milestone for Ethiopia and for the broader African classical music landscape. “Being selected to represent Ethiopia, alongside artists from two other African countries, is a testament to the growing appreciation of our contributions to the world of classical music,” he said.

The BraVo Award also opens new doors for Girma’s career. “First of all, it is a great opportunity for me to be able to work in other parts of the world,” he noted. “I think collaborating with international artists will open the door for me to do a lot of cultural activity for myself in the future.”