West African Insurance Companies Association (WAICA) in partnership with the Economic Community of West African States (ECOWAS) is set to create and establish an agency for the protection of foreign direct investment in the sub-region against the uncertainties of political and other related risks.
Speaking at the annual general meeting
of WAICA hosted in The Gambia by the Insurance Association of The Gambia (IAG) on
16 and 17 April, the secretary general and chief executive officer of WAICA,
William B. Coker, said the idea of establishing the agency, dubbed WAICA/ECOWAS
Investment Guarantee and Reinsurance Agency, is prompted by the fact that
safety and protection of investment is a major concern to all current and
potential stakeholders, especially investors, in West Africa.
“This venture is another vehicle that can be
used to facilitate regional economic integration, which is the aim of both
WAICA and ECOWAS,” Mr Coker said, adding that the agency is a private sector player
which will be run and managed as a commercial venture; “therefore the issue of
bureaucracy will not be there”.
The reinsurance aspect of the project
will be taken care of by WAICA Reinsurance Corporation, which is a new reinsurance
company set up by WAICA, Mr Coker disclosed.
When operational, the agency will give
potential investors worldwide the opportunity to invest in West Africa knowing
that they are protected against political uncertainties and other related risks
that might ruin their investment.
Analysts
say a major factor inhibiting the flow of foreign direct investment into the
ECOWAS region is the unstable political environment of its member states and
their very weak democratic governance structures.
