AfDB Invests €10m In CICA Re
The African Development Bank (AfDB) has deepened the retention capacity of CICA Re with the investment of €10 million in the firm.
The investment will give the bank a 6.56-billion FCFA stake (approximately €10 million) in CICA-Re and also join its board of directors.
CICA-Re is a key player in the insurance sector and it is owned by Bénin, Burkina Faso, Cameroon, Congo, Côte d’Ivoire, Gabon, Mali, Niger, Central African Republic, Senegal, Chad and Togo.
Chief Executive Officer of CICA-Re, Karim Diarassouba, signed an agreement behalf of the company, while the AfDB Group Director of Financial Sector Development, Stefan Nalletamby signed for the institution.
The two institutions sign a pact witnessed by the Ivorian Minister of Economy and Finance, Adama Coulibaly.
The bank in a statement, stated that the investment would strengthen the underwriting capacity of CICA-Re and contribute to the financing of its development and expansion across Africa.
It added that it would also bolster the company’s contribution to the development of domestic capital markets through the retention of a substantial share of locally generated reinsurance premiums, stressing that the investment would implement CICA-Re’s environmental and social policy, consolidate its governance and risk-management framework, grow its capacity to provide technical assistance in insurance and reinsurance and support efforts to diversify its reinsurance products.
The African Development Bank Group’s Director of Financial Sector Development, Stefan Nalletamby said: “This operation is one of the African Development Bank’s strategic interventions to increase its contribution to the development of the African reinsurance sector through supporting strong African players like CICA-Re, which is capable of rising to international standards.”
Also, Chief Executive Officer of CICA-Re, Karim Diarassouba said: “This partnership with the African Development Bank is intended to strengthen the company’s financial robustness and support the growth of the joint reinsurance company’s activities while enriching its multi-sectoral experience.”
The investment aligns with the bank’s strategic goal of deepening capital markets and promoting more-robust and better-integrated African financial institutions that offer more-diversified products to support the real sector.
CICA-Re is the third regional reinsurance company in which the Bank has made an investment.
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