By: Arshad Gardee, Managing Executive for Life at Hollard International

The insurance industry can drive sustainable and enduring socio-economic development in Africa if the sector can closely align its growth aspirations with the developmental needs of the markets in which it operates, says Arshad Gardee, Managing Executive for Life at Hollard International.

Gardee made these observations against the backdrop of the heightened levels of poverty that continue to impact many countries in the region. According to a 2024 report from Statista, around 429 million Africans are living in extreme poverty, with the threshold standing at 2.15 US dollars per day.

Gardee says the social and economic challenges that the continent faces make Hollard’s shared value strategy ever more pertinent. The company defines shared value as a win-win business strategy where business opportunity and commercial success intersect with social impact. Shared value forms the cornerstone of Hollard’s growth strategy, and it implies that organisations can be commercially successful while also making an impactful contribution on the social and economic challenges facing the communities in which they operate.

“While corporate social responsibility plays a valuable role in supporting communities, shared value takes this a step further by integrating positive social impact directly into the core business strategy. Rather than focusing solely on profit and then distributing a portion to communities, shared value creates a sustainable and long-term approach to addressing societal challenges, aligning the success of the business with the well-being of the communities it serves,” says Gardee.

Putting this into practise, Gardee explains that Hollard consistently strives to gain a deeper understanding of the unique social challenges each market faces before identifying where the biggest opportunities lie. “We deliberately prioritise the ‘elephants’ over the ‘mice’ — focusing on larger systemic issues that can have a significant impact,” says Gardee.

He says that Hollard’s approach is rooted in understanding the unique challenges faced by each market and tailoring our solutions accordingly. Most notably facilitating financial inclusion for underserved communities, promoting environmental sustainability, providing agricultural insurance for smallholder farmers, granting microinsurance for unbanked individuals, and affording tailored and bespoke products for small, medium, and micro businesses (SMMEs).

“The solutions that we offer to our diverse client base are designed to be affordable, accessible, and responsive to the risks that confront customers. By providing customised cover, we not only provide a safety net for customers, but we also play a part towards stimulating local economies,” he says.

He adds that Hollard is playing an active role in the renewable energy space, where the insurer has been at the forefront of driving strategic partnerships with industry leaders in this area, such as Renew Risk Africa, to underwrite non-fossil-based energy projects which address energy shortages, create jobs and support local economies.

Gardee believes that incorporating shared value principles has far-reaching social and economic spin-offs. “It drives sustainable economic growth by providing vulnerable communities with access to essential financial services, building resilience against unforeseen risks. This, in turn, strengthens local economies, promotes financial independence, and creates a foundation for long-term development. It also helps build trust in the insurance sector, as individuals and businesses gain access to protection that supports their livelihoods and growth.”

Gardee emphasises that the long-term sustainability of any company is closely tied to how well they integrate shared value into their business model, especially in Africa, where over 60% of the population is under the age of 25. With this large youth demographic comes a growing expectation for businesses to be purpose-driven and socially responsible. “Millennials and Gen Z are increasingly conscientious consumers. They expect companies to go beyond offering products; they want businesses to actively address critical issues such as climate change, inequality, and poverty,'” he says.

Looking ahead, several interventions need to be put in place to scale up the adoption of shared value principles across Africa. Partnerships between insurance companies, governments, NGOs, and community organisations need to be built and strengthened to tackle large-scale social issues.

Insurance companies should use the available technology and digital platforms such as mobile apps, online platforms, and digital applications to make insurance products more accessible, especially in remote areas.

Insurance companies should invest in training to build expertise in creating and managing shared value initiatives. They should support local entrepreneurs and small businesses.

Finally, insurance companies should align their growth blueprints with national and regional strategies. That means working closely with governments and regulatory bodies.

“At Hollard, we believe that businesses cannot thrive in isolation from the communities and the environment in which they operate. Shared value is at the core of our identity and shapes everything we do. By embracing this approach, we can play a significant role in driving sustainable development across the continent, while also humanising the insurance industry. This, in turn, can foster stronger connections between people and the broader insurance industry.” Gardee concludes.

‍