The Council of Insurance Ministers of CIMA member states met on December 31, 2020 in Bissau (Republic of Guinea Bissau), under the chairmanship of Mr. João Alage Mamadu FADIA , Minister of Economy and Finance of Guinea Bissau, President of the Council of Ministers.

The Council of Ministers welcomes the results of the first phase of the reform on the social capital and the minimum establishment fund for insurance companies, which in particular made it possible to strengthen the financial situation of market operators in the area..

However, due to the constraints undergone by the financial and economic sector which resulted in extending over an additional year (2020) the finalization of the first phase of the capital increase operation initially expiring on May 31, 2019, with regard to the impact of the Covid-19 pandemic on activity and investment opportunities and after examining the situation of the various markets, the Council of Ministers adopts the following measures :

  • granting of an additional 2-year period expiring on December 31, 2023 to insurance companies in the Republic of Chad to finalize the first phase of the capital increase, accompanied by permanent supervision of the National Insurance Directorate and a formal ban on the distribution of dividends until the situation is rectified ;
  • renewal for a period of three (03) additional years, of the special exemption granted in 2013 to Guinea Bissau on the requirements for authorization and share capital;
  • postponement of 3 years expiring on December 31, 2024 of the second phase of the capital increase to 5 billion FCFA and the establishment fund to 3 billion for non-life insurance companies;
  • suspension of the second phase of the FCFA 5 billion capital increase operation for life insurance companies, accompanied by a regular reassessment of the situation;
  • prescription of a reflection with a view to expanding insurance markets and competition in CIMA member states (single authorization) with a view to improving the quality of services offered to policyholders and beneficiaries of contracts.

With regard to insurance companies whose share capital remains non-compliant at the end of the first phase, their case will be settled as part of the resolution process underway at the Regional Insurance Control Commission..

Done in Bissau, December 31, 2020

For the Council of Ministers,

The President

João Alage Mamadu FADIA