Agreement Establishing Africa Re: A Comprehensive Overview
The African Reinsurance Corporation (Africa Re) is a pan-African reinsurance organization established to provide a comprehensive solution to the challenges facing insurance companies operating in the continent. Africa Re was established in 1976 by the African Union (AU) and 41 member states of the Organization of African Unity (OAU) at the time. It is headquartered in Lagos, Nigeria, and has regional offices in Cairo, Nairobi, Johannesburg, Abidjan, Casablanca, and Ebene.
The establishment of Africa Re was aimed at providing a platform for reinsurance operations to African insurance companies, thereby reducing the dependence on reinsurers from the Western world. This move was necessary to curtail the exodus of foreign currencies from the continent and to accelerate the development of the African insurance industry. Africa Re is structured as a corporation with a share capital of 2 billion US dollars and a paid-up capital of 1.2 billion US dollars.
The agreement establishing Africa Re was signed on 8th February 1976, and it came into force on the 6th September of the same year. The agreement that established Africa Re outlines the objectives, scope, and responsibilities of the organization. It provides a legal framework for the operations of Africa Re and also establishes the governance structure of the organization.
The objectives of Africa Re as outlined in the agreement include:
– To foster the development of the insurance and reinsurance industry in Africa
– To assist in the spread of technical knowledge and skills in the insurance and reinsurance industry
– To promote cooperation among African insurance companies and reinsurers
– To facilitate and encourage the establishment of new insurance and reinsurance companies in Africa
– To assist in the retention of premiums within the continent
– To promote the interests of African insurance companies and reinsurers outside the continent
– To undertake any other activities that will contribute to the development of the African insurance and reinsurance industry
The scope of Africa Re`s operations includes:
– Provision of reinsurance services to African insurance companies
– Investment of its funds in accordance with the objectives of the organization
– Establishment of subsidiaries and branches in Africa and other parts of the world
– Provision of technical support and training to African insurance companies
– Promotion of research and development in the African insurance industry
The governance structure of Africa Re is composed of the General Assembly, the Board of Directors, and the Executive Committee. The General Assembly is the highest decision-making body of the organization and is composed of all member states and the African Development Bank. The Board of Directors is responsible for the overall management of the organization, while the Executive Committee is responsible for implementing the decisions of the Board of Directors.
In conclusion, the agreement establishing Africa Re is a comprehensive and legally binding document that provides a framework for the operations of the organization. It outlines the objectives, scope, and responsibilities of Africa Re and establishes the governance structure of the organization. Africa Re has been instrumental in the development of the African insurance industry, and its impact on the continent cannot be overemphasized.