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TRANSFORMING AFRICA: Strong collaboration, smart policy, sound investments—and a total change of mind-set

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The timing is right: Africa holds enormous potential for rapid transformation. A continent in transition, it is among the world’s fastest growing regions, with a young and growing population in rapidly expanding cities, an improving business environment, expanding Internet connectivity, rising incomes, and shifting consumption patterns.

Despite economic and political challenges, these enduring trends have created an abundance of commercial opportunities across the continent, transforming it into a market and opportunity that investors cannot afford to ignore. In particular, public-private partnerships (PPPs) are seen as key towards transforming the African economy and eradicating poverty.

However, investor activity on the continent has long been constrained by structural obstacles, a lack of risk mitigation mechanisms, and few financing options, all of which inhibit the effective distribution and mitigation of risk associated with large-scale or long-term projects.

But Africa does not give up. Its growing youth are working hard to do things differently, becoming more and more entrepreneurial even as older generation entrepreneurs and politicians have realised that without collaboration, nothing substantial can be achieved.

‘The most important transformation is the transformation of our mindset,” said Ghana’s Vice President Mahamudu Bawumia at the recent African Transformation Forum (ATF2018), held in Accra and hosted by the African Center for Economic Transformation (ACET), a leading Pan-African economic policy institute, based in Accra in collaboration with the Government of Ghana. “We can do what other countries and continents have done. It is not rocket science; it is not impossible. We must have a mindset of making things possible, not one of thinking that major achievements are impossible.”

Africa does not give up…the CFTA is proof

Africa’s problems, according to many analysts, is simply the inability to work together for a common good. For example, for decades, West African nations have been working to attain a common currency but that is yet to materialise. Politicians have promised collaboration but consistently failed to deliver expected results, leading to the unfortunate conclusion that as long as the continent does not work together, significant changes will remain elusive.

The Continental Free Trade Area agreement (CFTA) is an opportunity to change the narrative. Brokered by the African Union (AU) and initially signed by 44 of its 55 member states in KigaliRwanda on March 21, the CFTA marks Africa’s biggest attempt yet to work together to drive development through improved trade and investment.

The agreement initially requires members to remove tariffs from 90 percent of goods, allowing free access to commodities, goods, and services across the continent. If ratified, the agreement would result in the largest free-trade area in terms of participating countries since the formation of the World Trade Organization.

The United Nations Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52 percent by 2022. The proposal will come into force after ratification by 22 of the signatory states.

Africa’s 11.3 percent intra-regional trade represents the smallest share compared to other continents of the world. Europe’s intra-regional trade stands at 70 percent, just like Asia’s. In North America the figure is 40 percent.

Africa’s sub-regions have the worst indicators than the rest of the world in terms of cost of trade. In ECOWAS and SADC, businessmen need 7.6 and 7.3 documents to export respectively whereas in the EU one needs just 4.5. Whiles you need 11.5 days to export in the EU, you need 27.6 and 31.2 days to export in ECOWAS and SADC respectively. The same situation applies to imports.

Paul Kagame, President of Rwanda and Chairman of African Union, speaking recently at ATF2018, noted that Africa is experiencing greatly accelerated progress towards the economic unification of the continent with the signing of the agreement.

In this year alone, the African Union has adopted the free movement protocol and inaugurated a single African air transport market, which will reduce not only ticket prices but also the need for stopovers on other continents.

“Joining up diffuse, fragmented markets would be a leap forward. Doing this across borders will require governments to work closely with each other, and with the private sector. By creating a highly networked, frictionless marketplace, we will encourage the best products, services and ideas to rise to the top. This will boost the economy as a whole and open up opportunities for women, rural populations and other marginalised groups,” he said.

Ultimately, the goal is to make the continent’s economies bigger and more dynamic, he says, adding that no country or company will lose out in the long term. This, he pointed out, is why business leaders are called upon to be champions of continental integration, first of all by seizing these new opportunities to grow Africa’s firms.

Financing infrastructure and the involvement of business

Business leaders now participate actively and meaningfully in African Union summits. This is based on the understanding that the shared prosperity at the core of the AU’s Agenda 2063 can only happen when the public and private sectors are working closely together.

“The business community should also contribute to holding governments accountable for putting what has been agreed into action, and pushing all of us to do more, and better,” President Kagame said during ATF2018. He was participating in the forum’s closing plenary, a frank dialogue between African Heads of State and business leaders.

Citing Africa’s vast transportation and logistical challenges, President Kagame said much more investment in big, joint regional infrastructure, including digital networks, is required. “Globally, there is no shortage of finance, both public and private. We can attract more of it to Africa, and help close the investment gap, by planning big projects of sufficient size to interest major funds—and enhance the business case.” This kind of activity, President Kagame emphasized, also makes regional integration “tangible and irreversible.”

But, he warned, African governments need to match external capital with African capital. “This can help reduce risk perceptions and ensure we share the upside of profitable deals,” he said, adding that African savings are not being mobilised effectively—an impediment to African capital investments that must be addressed.

To President Kagame, the biggest threats on the continent are also opportunities. With 450 million Africans expected to join the working age population by 2035—more than the rest of the world combined in that time—Africa’s population surge can power economies forward, as long as the growing labor force has the knowledge to perform available jobs.

But his worry is about schools and universities not keeping the pace with technology. “Over half of all jobseekers have few or no skills, while 41 percent have qualifications but no skills for the jobs available,” he said. “The gap is wider still in science, technology, engineering and mathematics.”

He opined that prosperity rests on good politics and a secure environment, because the transformation agenda requires a broad consensus that is sustained across decades. “Transformation requires leadership and accountability at every level, beginning at the top, but not stopping there.”

A need for banks to aid in development

Countries that are now developed economies have been strategic in their development process. In finance and banking, for example, developed economies incentivised banks to support risky but job creating and sustainable sectors of the economy. This led to banks becoming the agents of growth for decades and, in some cases, over a century.

At independence, Dr. Kwame Nkrumah, the first president of Ghana, established banks for specific purposes to aid economic development. For years after he left, these banks continued in that trajectory, from agriculture, housing, commerce, investment, and industry, until the turn of the new millennium when all banks became universal banks, which made them pursue profits to the detriment of economic transformation.

Due to the influence of development partners such as the International Monetary Fund (IMF), World Bank, and Western countries, Africa’s developing economies have allowed the banks to engage in ways they see fit without strategic guidance.

Ghana’s President Nana Addo Dankwa Akufo-Addo holds a different view. Speaking at the same Heads of State panel discussion at ATF2018, he expressed dissatisfaction with indigenous and foreign banks in Ghana that make profits and shy away from financing relatively risky ventures that can help transform the country’s economy.

“In our own country, the banks have, in the last 20 or 30 years, been very content to make lots of money and not be particularly involved in the risk-taking that contributes to economic development and transformation,” he stated.

President Akufo-Addo indicated that one of the major constraints to the transformation agenda of the country is access to capital and the cost.

“The foreign-owned banks are the main players in our economy and they have their own goals, which are not necessarily about the development of the country but about the profits that they make. I don’t have any difficulties with people wanting to make money, but I do have a problem with making money in an environment whereby it is not making a significant contribution to the transformation of the economy,” he said.

President Akufo-Addo further observed that the structure of Ghana’s financial and banking sector has perhaps contributed to the lack of desire on the banks to take all the needed investment and financing risk. He added that the state has a responsibility to ensure that good measures are put in place to strengthen indigenous banks to lead the financing of risky ventures in the country.

“Policy making would promote indigenous banks in our country to grow and be strong and take on the role of providing the financial wherewithal for transformation,” he said. “Without having banks that are ready to finance relatively risky ventures both in industrial and agricultural initiatives, it’s going to be difficult to make the transition we are seeking.”

With the continent holding 50 percent of the world’s arable land, more than 30 percent of the remaining minerals in the world, and the youngest and most vibrant population in the world, President Akufo-Addo reiterated there was no reason for Africa to be where it is presently. Fortunately, he said, African leaders are now taking seriously the role that governments need to play in the process of transformation by building strong economies based on sound macro-economics, educational reforms, and skills acquisition.

The President told the forum that his government had placed a priority on “sanitizing the macro-economy” leading to a significant reduction in inflation, interest rates, deficits, and national debt.

“With the management of the national economy, a significant progress has been made in laying the foundation for an attractive investment destination for Ghana,” he said. 

To give or not to give: the tax holiday conundrum

Every businessman or CEO will accept a tax holiday. After all, business owners are constantly on the lookout for possible loopholes in tax codes and laws to avoid payment or reduce it to the barest minimum, especially on a continent where corruption is rife and government officials are notorious for looting the coffers of the state.

In Ghana, tax exemptions granted in 2013 amounted to GH¢2.9 billion; GH¢3.2 billion in 2014; GH¢4.5 billion in 2015; and GH¢4 billion in 2016, according to data from the Ghana Revenue Authority and GCNet.

According to a 2015 report authored by ActionAid International and Tax Justice Network-Africa, ‘The West African Giveaway: Use and Abuse of Corporate Tax Incentives in ECOWAS’, these incentives are mainly granted to foreign companies and cost the economy about US$2.27 billion every year.

Even though government in April 2017 introduced a policy that forced companies to pay duties and later apply for refunds on exemptions, pressure from business groups, especially importers, forced the government into a U-turn five months later.

Despite the availability of such alarming data, business leaders continue to push for favourable incentives. Aliko Dangote, one of Africa’s most celebrated and successful entrepreneurs, urged governments to use incentives to attract businesses that have the capacity to employ in large numbers and guarantee the sustainability of those jobs.

When tax rates are too high, he cautioned, is when people look for avenues to evade tax payments. “The less you charge, the more you can widen the net and collect a lot of taxes from a lot of people,” he said.

He gave an example of the taxes his sugar factory paid to the Nigerian government after the expiration of tax breaks in 2006. Between 2007 and 2017, he said the business paid about US$2.7billion in taxes.

According to Mr. Dangote, his company, the Dangote Group, paid about US$277.78million in taxes last year alone. He said tax holidays gave his companies a lot of room to accumulate cash to reinvest—and benefit people through expansion and new job growth.

Despite his advocacy for tax holidays, Mr. Dangote stated that one of the major factors he considers before investing in any country is the quality and integrity of leadership.

“The first thing I will look at is the president. Is he a man of his word? The two main reasons [African businesses] go bankrupt when they try to go into industry are lack of power and inconsistency in government policy,” he said.

About the ATF2018 and outcomes

The two-day forum offered an opportunity for the private sector and other non-state actors to engage on ways to help shape the course of economic transformation in Africa. The event brought together more than 300 active participants—high-level government officials, CEOs, as well as other leaders from the private sector—to discuss solutions and make commitments towards accelerating job growth, boosting investment, and implementing transformation policies.

Tito Mboweni, a highly respected international banker and economist who also chairs the ACET Board of Directors, opened the forum with a strong call to action for Africa’s political leaders to work together with all stakeholders to keep Africa’s development on track and in African hands.

“I hope you hear us loud and clear,” he said. “We want to collaborate with you moving forward. Help us fight corruption. Help us fight the ‘big man syndrome’. Help us ensure that resources mobilized for Africa’s development go into Africa’s development.”

Mboweni’s strong words echoed the theme of ATF2018: a dialogue for action. In keeping with this central objective, the first day consisted of five concurrent working sessions centered around the Pan-African Coalition for Transformation (PACT), which was established after the previous forum in 2016, as a mechanism to foster peer learning and collaboration on transformation challenges and solutions. Ministers who participated in the discussions shared the action plans and other ideas generated from these working sessions with the full Forum on the second day.

Dr. K.Y. Amoako, the President and Founder of ACET, ended the forum by announcing a few outcomes, including a more collaborative approach to enhance the contribution of Africa’s think tanks and the formation of the new African Transformation Leadership Panel to be chaired by Liberia’s former president, Ellen Johnson Sirleaf. The Panel will be formed over the coming months, he said, and it will comprise eminent men and women—proven experts and leaders—who will help promote important transformation policies at the highest levels.

“It’s clear that we all have much work to do between now and the next African Transformation Forum,” Dr. Amoako said. “But I think we also know how to move forward so that we are able to get where we want faster, and with lasting results.”

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Business Interview

Recapitalization– The panacea to the woes of Ghana’s insurance market? – Mr. Justice Yaw Ofori -Commissioner of Insurance, Ghana

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In a bid to ensure a robust Ghanaian insurance industry, the National Insurance Commission, NIC, has initiated moves towards recapitalization. The initiative, yet to be officially announced, involves a planned increase in the Minimum Capital Requirement (MCR) for insurance and re-insurance companies by over three (3) fold. The industry regulator has engaged stakeholders to ensure smooth implementation of the exercise which has seen financial analysts draw a parallel with that witnessed in the banking industry last year.

This has prompted questions- some comparative analysis with the banking one as well as questions about its economic significance. The Insurance Commissioner, Justice Yaw Ofori, in an interview with the Vaultz Magazine, gave a detailed explanation of the exercise.

 

State of the Ghanaian insurance sector

Ghana’s insurance industry has in recent years witnessed a significant growth especially in terms of the number of new entrants recorded. The industry however continues to record low insurance penetration which still hovers around 3%.

The Insurance Commissioner believes this among other issues highlight the need for the industry recapitalization.

I would say Ghana’s insurance industry is strong despite the challenges with respect to recapitalization. The market is still virgin and there are a lot of areas which are untapped and that is why we see foreign companies coming into Ghana to do business. The oil sector is booming and so is agriculture as well as inclusive insurance and all we need to do is to make sure companies are well capitalized so far as they want to operate in Ghana” Mr. Ofori stated.

According to the NIC’s annual report, Return on Equity (ROE) for insurance companies has consistently been less than the corresponding year’s prevailing treasury-bill rate with the overall picture worsening year on year especially for life insurance companies. Mr. Ofori attributes this to the tendency for investors to choose high-yielding financial instruments over insurance which is a relatively long-term investment option.

MR. JUSTICE YAW OFORI -Commissioner of Insurance

“I think it’s all because people get more returns when they invest their monies in T-Bills and other non-banking financial instruments.  For instance, there was a time people were promised 25% to 35% on their investment which was more attractive so they didn’t see why they should invest in other assets like insurance. So some insurance companies were consequently recording underwriting losses” he explained.

The insurance industry has been contributing significantly to Ghana’s economic growth– albeit constantly at less than 2% of GDP through the provision of long-term investment finance to the economy whilst influencing production and consumption, internal and international trade among others.

“Insurance is a vital pillar of every economy. In Ghana for instance, it contributes about GH¢ 5billion in terms of business generated annually. About 12, 500 people earn a living directly from the industry and many more indirectly such as lawyers, doctors, carpenters, masons, and mechanics. Without insurance you can’t get bank loans because they need some kind of guarantee that they can recoup their money in the event of default”.

 

Insurance recapitalization– the facts and figures

Following its engagement with stakeholders including brokers and shareholders alike, the NIC has proposed an increase in the Minimum Capital Requirement (MCR) for life and non-life insurance companies from the current GH¢ 15million (approximately US$ 3million) to GH¢ 50million approximately US$ 10million).

Re-insurance companies will also see their MCR reviewed upwards from GH¢ 40million (approximately US$ 8million) to GH¢ 125million (approximately US$ 25 million) while that of brokers will be increased from GH¢ 300,000 (approximately US$ 60,000) to GH¢ 500,000 (approximately US$ 100,000).

“We came about these figures by taking into consideration how much a company would need to break even and stay profitable. We realized it will take 4 to 6 years for a newly established insurance company to break even with GH¢ 50 to GH¢ 60 million capital” the Commissioner noted.

The last time the market underwent recapitalisation was in 2015 and this was pegged against the dollar with an initial plan of an annual increment which after a considered review, was implemented differently.

“On an annual basis, the minimum capital was supposed to be adjusted to reflect inflation but it has not been done for about 4 or 5 years. But even if we had those increments, the current minimum capital would have been around GH¢ 25million which is about half what we are proposing now because Ghana’s economy is not like it was about 10-15 years ago; it’s bigger now” he stated.

In 2017, about three (3) companies reportedly had challenges meeting the then minimum capital requirement of GH¢ 15million. Mr. Ofori confirmed this as a normal industry development.

“It’s always been so in every insurance industry. There are times that companies will have challenges meeting the minimum capital but that does not mean that it’s time to shut them down. We, as regulators, try as much as possible to encourage the shareholders to recapitalize because shutting down an insurance company is not an easy thing and it is the last thing a regulator wants to go through,” he disclosed.

 

The ultimate goal

The Insurance Commissioner reiterated that the purpose of the recapitalisation was to ultimately grow the industry to the benefit of the economy by protecting the interest of the policy holder.

“Following our stakeholder engagements, we’ve done our concept paper which has been reviewed by the board. We’ve explained to stakeholders, the rationale behind the calculation and of course not everybody is going to like it but at the end of the day, we want the best for the industry. The Commission is not interested in closing any entity but rather building a strong market that takes care of the interest of the policy holder,” Mr. Ofori stated.

“Our economy has also grown. The GH¢ 15million was implemented some years ago. Now we have the oil boom and the country is losing so much revenue, we are actually sending money out because our companies are not financially strong to take much of the risks,” he added.

“Over 90% of our risks have to be insured on the international market and these are some of the reasons our cedi is always affected by the dollar. There is more demand for the dollar than the cedi and this actually arises because we are sending these risks out which demands paying insurance premium in dollars. So, what we are trying to do is, we want everyone to increase their intake. The more absorption they can take, the less flight of insurance premium,” the Commissioner asserted.

He also defended the proposed 300% increase in the capital requirement as crucial in stimulating the desired growth.

 

Correlation with the banking crisis and recapitalisation

The NIC has already indicated the banking crisis and recapitalisation somewhat delayed its planned exercise in the insurance sector. This, according to the Commission is because banks were already looking for capital from the same market the insurance companies will be considering to recapitalize.

A recapitalisation directive in the insurance sector would have thus led to competition between banks and insurers in raising capital– making it a lot more difficult for both entities.

With the bank recapitalisation now over, analysts believe the way has now been paved for a similar exercise in the insurance sector. The Insurance Commissioner confirmed this assertion citing the banking crisis as a major factor affecting insurance recapitalisation efforts in 2017 which almost led to the collapse of about three (3) companies.

 “When we assess an insurance company, we don’t look at only the minimum capital but the totality of the risk that it carries. So GH¢ 15million is the minimum but we have companies worth over GH¢ 200million. So if you are worth over GH¢ 200million and you have risk of let’s say GH¢ 600million and you cannot pay your claims on time, it is a challenge despite meeting the minimum requirement. And most of the challenges some of our companies are facing are linked to the banking crisis because they have monies with these banks and they cannot access these monies,” he added.

The Insurance Commissioner also dismissed assertions that the insurance recapitalisation is a mere replication of that witnessed in the banking sector and states that the two exercises are mutually exclusive.

 

“No it’s not a replication for the fun of it. Everything is interconnected. Even some individuals have lost their monies because some of these banks have been consolidated. When such entities go under, it affects everybody. When insurance companies make their monies, these monies are kept in the bank for investment in the economy. Insurance companies go for those monies when there are claims or a need for it. Now we have an insurance company going to the bank and the bank has no money. Although on paper they have monies, once it’s inaccessible, it cannot be considered– affecting their Capital Adequacy Ratio,” he revealed.

This, according to the Commissioner, only makes a stronger case for the recapitalisation.

Meanwhile, banking and insurance operations are distinctly different with diverse inherent risks. Some analysts thus insist recapitalization may not necessarily be the way forward for addressing the woes of the insurance industry. Mr. Ofori however asserts, insurance companies even need more capital than banks.

 

Risk-Based Capital requirement

The NIC’s current regulatory approach is geared towards the global trend of Risk-Based Supervision framework and the Commission is still pursuing this approach by way of a Risk-Based Capital (RBC) requirement.

 

“The minimum capital requirement is also part of the risk-based framework because, that means, so much assets to absorb more risks. Risk-based means we’re looking at the totality of your portfolio to see the inherent risks and how we can manage them. It is a complex thing. Even though we asking for minimum capital, risk-based provisions will also come from it. When you suffer from malaria you don’t take only chloroquine. You add multivitamins and some pain killers to make you survive,” he illustrated.

 

Recapitalisation has always been used as a regulatory tool to check the financial soundness of the industry.  There is, however, an emerging school of thought that this is not as crucial as the regulator focusing on ensuring effective management of the capital of the companies by ensuring they maintain capital levels commensurate with their respective risks.

 

Mr. Ofori says all these complement each other in strengthening an industry.

“Even new companies entering the market are not allowed to start up with the GH¢ 15million which was the minimum but at least GH¢ 25million. We couldn’t ask for the GH¢ 50million and even with that, they are investing more.”

 

Local versus International standards

Internationally, capital is not necessarily used as the basis for assessing the strength of an insurance company as opposed to the company’s net worth– an assertion Mr. Ofori confirmed.

“In advanced countries, their capital requirement could be like that of Ghana or even less.      That doesn’t mean that the companies that applied for the license to operate insurance don’t have the capital backing. These companies know that insurance business is risky. So if the minimum capital required is US$ 3million, that company comes into the business with US$ 500million by way of net-worth.

When we say minimum like the GH¢ 50million, that money is not going to sit down doing nothing. It could be your businesses, assets and other investments. Insurance monies have to be working. So if you have an insurance company that owns apartments, it’s part of their total worth. When we assess your worth, we look at both your liquid cash and assets because an insurance company can have a chain of hotels which means it can take as much risks and when there is a problem, it can fall on them. The Aon’s, Allianz and CGI’s have big investments all over the world and when they have challenges, they know where to draw money from. So when we say minimum capital requirement, it is not only liquid cash but also investments in T-Bills and so on,” he further explained.

The MCR in the Pan-European Solvency RBC regime is only € 3.2million (approximately GH¢ 19million) for life and reinsurance companies and € 2.3million (approximately GH¢ 14million) for non-life insurance companies. Some analysts have in this light predicted Ghana may only end up being one of the over-capitalised industries in the world by end of the recapitalisation.

But Mr. Ofori is challenging such views insisting that the local insurance industry which is still a burgeoning one cannot be placed on a level pegging with such developed regimes when it comes to capital requirement.

The dollar equivalent of GH¢ 50million is about $ 10million or less depending on the exchange rate and other factors. Don’t forget the financial strength of those companies operating in those markets. One company is even worth more than all companies put together in Ghana. When we make reference to other places, Ghana is different. When you come to Ghana, the way people respond to work is different. Minimum capital has nothing to do with international best practices,” he emphasized.

Ghana is not the country with the highest minimum capital requirement in the world. There are African countries such as Kenya whose was higher than Ghana. We’ve done a lot of research. Kenya is about US$ 8million or so and in Ghana the GH¢ 50million which was supposed to be $10 million will probably come low depending on exchange rate and other things. Insurance is international and transnational and each company must be worth its weight in gold on the international risk market otherwise businesses coming from outside Ghana will not consider Ghanaians,” he elaborated.

 

Expected Outcomes

The Insurance Commissioner is confident the industry will respond positively to the exercise – citing special provisions to facilitate the process.

“If we should introduce the minimum capital, almost 50% of companies will meet it per our analysis. Looking at their portfolio, some of them qualify already, some with a little push will be there and a few may have challenges. But we will encourage them; that’s why we have transitional provisions.”

According to Mr. Ofori, the recapitalization is ultimately expected to reposition the insurance industry and the economy as whole on a stronger footing by addressing issues like low insurance penetration and undercutting.

“If you have a lot of companies on the market that are not financially strong, you will definitely have problems like undercutting because some of them are ready to sell for cheap. They take low premiums and when there is a loss, they are unable to pay. Strong companies have bad days but their account is so big and they are able to pay claims. So I think we’ll have a much disciplined market because minimum capital is not going to be easy. Recapitalisation will help eliminate undercutting because the more you undercut, the more it affects your minimum capital. So you’re going to do prudent underwriting”

In terms of the bigger picture by way of economic impact, he stated “I believe all in all, the industry can also retain much of their underwriting income and probably create more jobs. The more money we can create, more employment can be created, less monies leaving the country, our cedi might be more stable and the economic benefits are numerous”.

He also revealed a new bill is currently under consideration to complement the recapitalisation in addressing the longstanding challenge of low insurance penetration in Ghana.

“We’re working on a bill to make sure we can have more compulsory insurances. We are trying to make sure that these compulsory insurances will help boost the interest in insurance. We’re also increasing market conduct supervision to enable companies pay their claims on time. We’re providing a lot of insurance education to the industry and the general public. This year for example the Commission out of its own budget, through the Ghana Insurance College will train 10,000 Ghanaian youth as insurance agents nationwide for free so that there will be a pool of agents from which the industry can always fall on to recruit. We’re also doing much with respect to the compulsory fire insurance; creating awareness that it is compulsory to have these kinds of insurances. So we’re doing all we can.”

Even though the recapitalisation in the banking industry led to consolidation of several banks and lay-offs, Mr. Ofori believes the final narrative in the insurance sector may not necessarily be the same– allaying such concerns of concomitant job losses as a result of companies failing to meet the capital requirement.

With the banking recapitalisation, some banks were affected. We don’t want to have those challenges. We don’t want the companies to go under. Much as we want the minimum capital to go up, we want to do it in such a way that we move along with everybody,” he concluded.

 

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