Mr. Makove and Madam LaribaBawa simultaneously signing the MoU
Ghana’s Commissioner of Insurance, Lydia Lariba Bawa on Monday met her Kenyan counterpart, Commissioner Sammy M. Makove, to sign a Memorandum of Understanding (MoU) that will improve cross-border business in the insurance industry in the two countries.
Before signing the documents, both commissioners addressed the audience at the National Insurance Commission (NIC) in Accra and touched on how the MoU will benefit both Ghana and Kenya.
“Without doubt this is a historical feat which will not impact only our generation but generations to come as far as our industry is concerned,” Ms Bawa said.
The MoU will improve the collaboration and communication between the two nations, she said, adding that the MoU will allow insurance regulators in Ghana to effectively open and run business in Kenya and vice versa.
For example, Ghanaian insurance regulators will have more access to information on Kenyan-based insurance companies, according to the Commissioner of the NIC.
Regulations will also be more consistent between the two nations.
This means that an insurance company based in Ghana that wishes to start business in Kenya will be able to more easily gain approval to open a branch in Kenya because the memorandum legitimizes effectively run companies that comply with regulations.
In this way, the MoU also helps protect Ghana and Kenya in the event of financial crisis.
Mr Makove explained that Ghana’s economy, for instance, could be negatively affected if a Kenyan-based company operating in Ghana experienced financial difficulties.
“Anything happening in Kenya could definitely have consequences on companies in Ghana,” he said.
The MoU therefore serves to improve communication between the two countries to ensure that financial pitfalls in a company based in Kenya, for example, are contained and do not have a ripple effect on Ghana’s economy.
Ghana has signed similar MoUs with neighboring countries, including English speaking West African Countries (WAISA).
Ms Bawa said that Ghana would benefit substantially under the agreement with its partner in the east.
“The Kenyan market as we all know is well developed, and we stand to benefit greatly from their regulatory experience just as they will also benefit from us,” she said.
After signing the MoU, Ms Bawa and Mr Makove exchanged gifts to boost relations between Ghana and Kenya.
“We want you to always remember that we have this relationship,” she told Mr. Makove.
She gave him a package and large stack of magazines.
BY Derek Maiolo & Melvin Tarlue