Famara Jatta, Governor, Central Bank of The Gambia has said that the economies of most countries in Sub-Saharan Africa continue to grow at a solid pace and that the establishment of the proposed West African Central Bank has been moved to 2009.

Governor Jatta made these remarks yesterday, at the 29th West African Insurance Companies Association (WAICA), annual general meeting and educational conference which is currently underway at the Kairaba Beach Hotel.

He said economic growth in the region averaged 5.0 percent from 2000-2005. “In 2006, growth is estimated at 5.4 percent, increasing to a robust 5.9 percent in 2007. Inflationary pressures are expected to increase, albeit slightly from 11.7 percent in 2006 to 12.6 percent in 2007. In the WAMZ countries, which comprise Nigeria, Ghana, The Gambia, Sierra Leone and the Republic of Guinea, economic growth is estimated at 6.9 percent, higher than the average of 6.0 percent over the past 5 years”, he said. However, he added that the achievement of the Millennium Development Goals, including significantly reducing poverty by 2015, would require scaling up the growth rate to 7-8 percent.

“This is attainable if we remain diligent in the pursuit of building strong institutions and sound policies including, consolidating macroeconomic stability, a key requirement for sustained increases in private savings and investment; strengthening the financial sector, by developing markets; involving supervision and regulation and opening the sector to domestic and foreign competition; strengthening governance, transparency and accountability in the management of private resources; improving regulatory and judicial frameworks, and deepening initiatives for regional integration to take advantage of the opportunities presented by globalisation.

‘The challenges of chance in the insurance industry’ is quite apt. Change and the associated challenges are permanent fixtures of business”, he noted.

Mr Jatta said it need not be over-emphasised that government also has an important responsibility in promoting the growth of the industry. General macroeconomic conditions, he added have substantial impact on the insurance industry and the pace of its development, noting that low and stable inflation is possibly the most crucial prerequisite for effective and efficient resource mobilisation and allocation through the financial sector in general and the insurance industry in particular.

He finally revealed that about two years ago, the Central Bank decided to raise the minimum regulatory capital to D15.0 million for insurance companies operating in The Gambia.

Mr. Joe Ameh, president of WAICA said The Gambia has been a strong supporter of WAICA since its inception in 1973. He said successive market leaders in The Gambia have played and continued to play an active role in the activities of WAICA with strong support from the government and people of The Gambia.

“WAICA is at this stage confronted with the challenges of change. Chance in our individual markets compelled by government regulation, market practices and competition. The twin phenomenon of globalisation and pressure for economic liberasation has also brought in its wake a number of economic reforms now taking place in our member countries. There is the challenge of technology with its attendant impact on business processing”, he said.

Mr. Ameh said, “Our association informed by the need for collective effort must wake up to the reality of responding to these challenges for the benefit of our companies and our nation’s economy. May I call on member companies and our Governments to support this important academic and research center through sponsoring of students to the school, as well as sponsorship of research programmes by the research center also located in the institute”.

Ms Senor Thomas, president of the insurance association of The Gambia said, there is a need for the insurance industry to prove its value to clients in a world where demands are constantly changing. “In fact we need to be more focused to help drive our industry to another level. This will help to build confidence in the industry and people will be more willing to insure their risks”, she said. Pa Alhassan Jagne, CEO of Prime Insurance delivered the vote of thanks.