DRC: A bill to liberalise the insurance sector presented to the Senate

Mar 28, 2014

bill to liberalise the insurance sector was presented on Wednesday (26 March) to the Senate of the Democratic Republic of Congo.

A bill to liberalise the insurance sector was presented on Wednesday (26 March) to the Senate of the Democratic Republic of Congo.

If adopted, this bill will end the monopoly of the National Insurance Corporation (Sonas).

The Congolese Vice-Minister of Finance Roger Shulungu said that this monopoly has shown its limits and deprived the country of enormous financial resources, Radio Okapi reports.

He added that the government was committed to increase economic growth and reduce poverty in the country, and liberalising the insurance market is part of the solution.

The development of the insurance market should, according to experts, have beneficial effects on the financial system and businesses' access to finance.

The sector can play an important role in reducing the risks associated with agriculture, such as natural disasters, which are partly responsible for the low level of funding for agricultural enterprises.

Products such as insurance compensating for specific climate risks, or certain types of livestock insurance, as well as products based on indices can serve as collateral to access a loan from a bank or microfinance institution.ADNFCR-2976-ID-801707525-ADNFCR