Malawian Vice President, Dr Saulos Chilima, has recently tried to encourage insurance companies to invest and ensure the agriculture sector, recent stories tell that this puts an end to world hunger.
How did this happen?
The Insurance Institute of Malawi organized an annual charter dinner Saturday Night in Blantyre where Saulos Chilima held his speech. His speech was comprised of many ideas centered on this issue. He started out by saying that only 1.4 percent of the country’s market is insured, sectors like the car industry in urban areas, and that other area are left uncovered. He believes that the time has come for insurance companies to invest in other profitable areas, stating that agriculture is clearly one of them.
Is investing in agriculture a good decision?
He found it important to note that Malawi is an agro-based economy country and investing in agriculture seems to be a natural choice. It’s not a niche industry and it provides a good sum of profit each year. Farmers would be more willing to borrow large sums of money and invest in this sector if they knew they could benefit from insurance.
He urged insurance companies to consider expanding into other fields apart from agriculture that could help eradicate poverty.
Chilima went on to commend insurance companies for all the contribution that they have made to the economy and to the country. He went on to urge them try and raise awareness for insurance. Most people are poor and they do not want to invest in the market or any field because they do not know what insurance is and what things can be insured. If the insurance companies try to educate people on the benefits of having an insurance, Malawi would have a better chance and evolve from an economical point of view due to people’s interest in starting their own businesses.