james wika 
ZEP-RE (PTA Reinsurance Company) has embarked on a significant partnership with the Agence Française de Développement (AFD), sealing a €10 million agreement for an innovative financial instrument.This instrument is designed to strengthen ZEP-RE’s efforts in deepening insurance penetration across the continent, particularly in the agricultural sector and areas affected by climate risks. The overarching goal is to amplify the developmental impact of both organizations.
In tandem with this financial collaboration, a €500k technical cooperation agreement has been established to support ZEP-RE in crafting inclusive insurance solutions and to provide pivotal assistance to insurance regulators within COMESA member states.
This strategic alliance marks a significant milestone, empowering ZEP-RE to pioneer and broaden inclusive insurance offerings, thereby strengthening community resilience within COMESA nations.Furthermore, this partnership is set to enhance the proficiency of insurance sector regulators, fostering a resilient and progressive insurance environment throughout the region.
To bolster this approach, AFD has allocated a €10 million stand-by and subordinated credit line, aimed at enhancing ZEP-RE’s financial structure and reinsurance capacity and, by extension, that of the insurance sector. This initiative aims to boost insurance penetration across Africa. Additionally, this funding will support the insurance of impactful projects, notably in the realms of climate change and agriculture. This will increase the agricultural sector’s resilience to climate change and foster financial inclusion among smallholder farmers.
“ZEP-RE is elated to have a strong partner such as AFD who have demonstrated their trust and commitment to this relationship by not only extending a standby line of credit to support underwriting of climate risks, but in addition committing to co-create and develop programmes aimed at closing the protection gap of the most vulnerable of our communities for sustainable development. This is only the start of a long term mutually beneficial partnership for impact between ZEP-RE and AFD.’’, Hope Murera, the MD and CEO of ZEP-RE, said at the signing ceremony.
“After signing a Memorandum of Understanding with ZEP-RE about strengthening the development of the insurance sector in East Africa, AFD is delighted to extend its partnership with this new project. We are particularly proud of its first intervention in favor of the re-insurance sector, a sector with high economic leverage. AFD created for this purpose an innovative financial tool with a view to replicating it”, said Hélène N’Garnim-Ganga AFD regional director in Eastern Africa.
