Collaboration key to unlocking Africa’s insurance sector potential: AfCFTA
SAMANTHA MADE
Africa’s insurance sector could achieve unprecedented growth and integration if regulatory bodies across the continent collaborate, the African Continental Free Trade Area (AfCFTA) has said.
Speaking at the general assembly of the Organisation of African Insurance Supervisory Authorities (OAISA), AfCFTA’s Director for Trade in Services, Investment, IPR, and Digital Trade, Emily Mburu-Ndoria, emphasized that standardized regulatory frameworks and strategic cooperation are critical to unlocking the sector’s full potential.
“The AfCFTA Regulatory Framework on Financial Services is a step in the right direction, but we need to see more collaboration among regulatory bodies to streamline regulations across borders,” Ndoria said.
She highlighted digital transformation as a key priority for the sector. “Investing in technology-driven platforms will help insurers better manage risks and respond to the growing demand for innovative solutions,” she said, urging the digitalization of insurance operations to improve efficiency, data sharing, and access to products, especially in underserved areas.
Capacity building also remains essential, Ndoria noted. “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.”
The AfCFTA Protocol on Trade in Services encourages coherent policies among State Parties, aiming to reduce discrepancies in regulations that hinder cross-border operations. Ndoria stressed that domestication of these frameworks by individual countries is key. “For AfCFTA to succeed in the insurance sector, all stakeholders must remain committed to domestication efforts,” she said.
However, she acknowledged emerging challenges, including capacity constraints and political-economic instability. “There is need for greater investment in insurance education and capacity‑building to develop a skilled workforce that can meet growing market demands,” Ndoria said.
She also flagged Africa’s dependence on foreign reinsurance providers due to infrastructure limitations. “Many regional insurers rely heavily on foreign reinsurance providers, which may not fully align with AfCFTA’s goal of fostering African‑centred solutions and regional integration,” she said, advocating for stronger regional reinsurance networks to support cross-border trade and mitigate risks.
Political and economic stability in member states is also critical. “Political instability, sudden regime changes, conflicts, or inconsistent policy implementation undermine investor confidence and disrupt insurance markets,” Ndoria said. She added that stable governance and predictable regulatory environments are necessary for a thriving insurance sector.
Echoing these sentiments, Commissioner of the Insurance and Pensions Commission (IPEC), Grace Muradzikwa, said: “The liberalisation of trade and services, including insurance and pensions, requires us to harmonise our regulatory approaches and strengthen cooperation.” She added that effective supervision under AfCFTA will ensure cross-border products are sound, consumers are protected, and regional integration drives inclusion rather than systemic risk.
Muradzikwa urged regulators to adopt a flexible approach in the face of rapid market and technological changes. “The rapid changes in technology, climate risk, and market innovation require that we move from reactive supervision to adaptive leadership,” she said, emphasizing the need to “learn, unlearn, and relearn.”
OAISA President Issouf Traore confirmed ongoing efforts to harmonize regulatory frameworks across the continent. “One of the objectives of OAISA is to consolidate all our energies across the continent, to pool our efforts towards a better insurance sector, particularly when it comes to regulation, to see how we can harmonize all the various regulatory frameworks on the continent,” he said.
AfCFTA believes that by implementing these recommendations, Africa’s insurance sector can unlock its full potential, driving growth, innovation, and competitiveness across the continent.
