By UK Correspondent
UK-BASED Diaspora Insurance (DI) is now a truly pan-African company with operations in several countries and helping mitigate the adverse socio-economic impacts of brain drainage on the continent.
Addressing a workshop organised by the Birmingham Africa Business Chamber, recently, Diaspora Insurance founder and Chief Executive Jeff Madzingo said brain drain was as serious problem for Africa and the company was playing a key role in linking the Diaspora with the continent.
The workshop was attended by, among other dignitaries, South Africa’s sports minister Nathi Mthethwa, Kenyan High Commissioner Manoah Esipisu, the Ugandan deputy high commissioner John Mugerwa as well as the trade representative at the Ghana High Commission Papa Owusu-Ankomah.
“(Brain drain has seen) Africa becoming a training ground; you train professionals and then lose them to first world countries. That brain drain is really draining in terms of human capital capacity development,” he said.
“How do we reverse it? It’s difficult to reverse in a physical manner because people will, naturally, migrate and look for opportunities and there is very little we can do apart from creating opportunities for them back home.
“But as Diaspora Insurance, we are able to link the African Diaspora, lost by the continent to the first world countries, with their countries back home.
“We created a solution called Diaspora Funeral Cash Plan which, as opposed to traditional consumer-based remittances, creates opportunities and capacity in Africa while hosting risk in some of the world’s biggest capital markets in London and Berlin alike.”
Diaspora Insurance CEO Jeff Madzingo with Ugandan deputy high commissioner John Mugerwa
He added; “Also, when it comes to financial inclusion, we are risk-transferring such that people in Africa are able to be covered on a policy where the risk resides in the biggest capital markets of the world through our product.
“This is because a diasporan is able to cover not just themselves in the Diaspora; they are also able to cover their family back home.
“As such, when a bereavement happens back in Africa, the money is paid from the world’s biggest capital markets into those communities, in the process giving capacity to these communities.”
Now in its tenth year of operation since writing he first policy in 2012, Diaspora Insurance has grown to become a multi-million-dollar business which has also paid our millions of dollars in cash settlements to families.
From its base in the UK, the company has since expanded to some eight countries in southern Africa, four in east Africa as well as Ghana in West Africa.
“We have a call centre in Birmingham but we are expanding rapidly and now have another call centre in Randburg South Africa, creating employment there as well,” said Madzingo.
Diaspora Insurance CEO with the trade representative at the Ghana High Commission Bartels Papa Kow
“We are in the process a buying a huge office building in South Africa for our Call Centre and that is money coming in, not as consumer remittances, but actual direct investment going into Africa as part of brain drain mitigation.
“We are looking to invest in different markets and as a growing company, there are opportunities arising from our growth in terms of distribution partners and customer support.”
He commended the Birmingham African Business Chamber for creating a networking platform for Diaspora businesses saying, “we believe in the power of networking and unlocking of opportunities.
“… and, by coming together as Africans, we also share ideas and encourage each other to do better. So, there are always opportunities in coming together and we are very proud to be part of the African business chamber.”
WATCH Diaspora Insurance CEO presentation below;
