Activa elevates credit insurance to boost SME export growth
Activa International Insurance has stepped up efforts to promote credit insurance as a practical solution to the persistent financing challenges facing Ghanaian businesses, particularly small and medium-sized enterprises (SMEs).
At a forum held in Accra, in collaboration with global credit insurer Coface, the company brought together exporters, bankers and industry players to explore how businesses could use credit insurance to access funding and expand into international markets.
Speaking at the event, the Managing Director for Activa, Abubakar Salifu Godmar, explained that credit insurance could help convert unpaid invoices into secure assets that banks are more willing to finance. That, he said, could significantly ease the financing burden on SMEs.
The Managing Director stated that Activa was working to adapt those solutions to the local business environment, ensuring that companies could manage both domestic and cross-border risks effectively.
The Commercial Director for Coface Magreb, West and Central Africa, Hicham Kabil, noted that success in international trade depends not only on finding markets but also on managing risks and maintaining healthy cash flow.
Banks, Mr Kabil said, were increasingly showing interest in insured transactions, as credit insurance reduced the risk of non-payment. That development, he indicated, was expected to improve access to financing for SMEs, many of which struggle to meet traditional lending requirements.
He said Coface operated in more than 200 markets worldwide and had extensive experience in trade credit risk management.
The Chief Financial Officer (CFO) for Activa, Mr Emmanuel Tsumasi, said the credit insurance forum came at a time when Ghana was seeking to expand non-traditional exports and take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
Despite its benefits, he said, credit insurance was not widely used in Ghana, largely due to low awareness and limited understanding.
Activa, he said, believed that increased education and collaboration among stakeholders would drive adoption. With the right tools and support, he said, SMEs could strengthen their resilience, expand beyond local markets and contribute more meaningfully to national economic growth.
The participants were taken through real-life applications of credit insurance, including how to protect receivables, manage defaults and use digital tools to monitor transactions.
BY KINGSLEY ASARE
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