Expert Lists Strategies To Unlock AfCFTA’s Full Potentials For West Africa’s Insurance Sector
Ms. Beatrice Chaytor, Head, Trade in Services at AfCFTA Secretariat
An expert has listed five strategic ways to unlock the full potential of the African Continental Free Trade Area (AfCFTA) for West Africa’s insurance sector.
The five strategic ways include Regulatory Harmonisation, Digital Transformation, Capacity Building, Reinsurance Capacity, and Political and economic stability.
Speaking on the topic: “Emerging Issues in the Domestication of Afcfta Insurance in West Africa,” at the just concluded 2024 West African Insurance Companies Association (WAICA) Conference in Accra, Ghana, Head, Trade in Services at AfCFTA Secretariat, Ms. Beatrice Chaytor, emphasized the need for insurance operators in West Africa to implement these strategic approaches.
On Regulatory Harmonisation, she said, “There is an urgent need for regulatory bodies in West Africa to collaborate and work toward establishing standardized frameworks for the insurance sector.
“The AfCFTA Regulatory Framework on Financial Services aims to do this. It will support streamlining regulations across borders to reduce operational complexities for insurers and enable more efficient cross-border service delivery once adopted by the African Union (AU) Assembly of Heads of State and Government.
“Prioritizing the digitalization of insurance operations will enhance efficiency, improve data sharing, and expand access to insurance products, particularly in underserved areas. Investing in technology-driven platforms will help insurers better manage risks and respond to the growing demand for innovative solutions.”
On Capacity Building, Ms Chaytor said, “Implementing capacity-building programmes to bridge skills gaps in the insurance sector is essential for industry growth. Training programs for insurance professionals—such as brokers, underwriters, and risk managers—will be necessary to meet the demands of an increasingly integrated market under AfCFTA.”
“Enhancing local reinsurance capacity through regional cooperation will help reduce the dependency on foreign reinsurance providers. Strengthening local reinsurance markets will improve the sector’s resilience and enable insurers to handle more complex risks tied to cross-border trade and investment,” she said concerning Reinsurance Capacity.”
On Political and Economic Stability, Ms Chaytor explained, “Promoting political and economic stability across Member States is foundational for the long-term success of the insurance industry under AfCFTA. Stable economic conditions encourage investment, enable insurers to plan for the long term, and create a conducive environment for market growth.”
She noted that AfCFTA can potentially transform the insurance industry in West Africa, facilitating growth, innovation, and increased competitiveness.
“The AfCFTA Protocol on Trade in Services encourages coherent policies across State Parties through the regulatory frameworks, to reduce discrepancies in regulatory practices that hinder cross-border operations.
“For AfCFTA to succeed in the insurance sector, all stakeholders must remain committed to domestication efforts by translating the Protocol’s commitments into actionable outcomes at the national and regional levels,” she added.
