Private sector growth critical to financing of National Development – MUTATI

As published on the Smart Eagles Facebook page, by Chileshe Kandeta on November 15th 2017

MINISTER OF FINANCE FELIX MUTATI has said the Government is committed to supporting private sector growth and expansion as that creates a platform for tax collection, and improved domestic resource mobilisation.

The Minister also said the Government will carry out legal reforms in the Insurance Industry by repealing and replacing the Insurance Act in the first quarter of 2018 in order to strengthen sector governance and to facilitate the creation of an environment for improved financial soundness of industry players.

Mr. Mutati was speaking to a gathering from diverse walks of life who assembled at Raddison Blu Hotel in Lusaka last night, to witness the rebranding ceremony of AON Zambia to Minet Zambia. The event marked the launch of Minet Zambia’s risk, reinsurance, and human resource advisory operations. This follows the conclusion of acquisition of AON Sub-Sahara operations, including Zambia, by Capitalworks.

The Minister reminded the audience that risk management is a crucial part of any business and that any undertaking to cover risk of the insured and the insurer must be cost effective, “which is why the insurance premium levy on reinsurance has been removed.” He said that, being part of the overall financial system of the country and one of the three regulators of the sector, it was inevitable for the Pensions & Insurance Authority to step-up its leadership, operational efficiency, and regulatory influence on the industry that it regulates.

Mr. Mutati took the opportunity to announce that a Board of Directors for the Pensions and Industry Authority has been appointed to ensure that there is strict enforcement of regulation, and to set the Insurance Industry on a path of sustainable reforms. The new PIA Board Members are as follows;

1) Mrs. Petronella Mwangala, Chairperson

2) Major Constantine Hara, Member [Ministry of Justice Representative]

3) Mr. Chibamba Lopa, Member [CEO Grofin Zambia]

4) Mr. Harrington Chibanda, Member [Representative of Federation of Employers]

5) Mr. Anthony Dumingu, Member [Ministry of Labour]

6) Ms. Prudence Malilwe, Member [Bank of Zambia]

7) Mr. Akapelwa Imwiko, Member Ministry of Finance]

8) Mr. Alfred Chifota, Member [ZUFIAW]

9) Mrs. Pitican Miyanda Syamfuko, Member [ZICA]

Delivering welcoming remarks at the same event, HUMPHREY KABWE, MINET ZAMBIA CHIEF EXECUTIVE OFFICER said the agility that the AON/Capitalworks transaction provides not only places his firm in the best possible position to service the growing and expanding middle-class market, but also creates an enabling environment for servicing the increasing cross-border trade. “In particular, Minet Zambia will focus on expanding its business at Zambia’s borders by servicing companies that conduct business in and out of our landlocked country,” said Mr. Kabwe. “We will also expand to other towns, especially in the new mining areas in the North-Western Province by establishing agencies to serve our clients,” he added.

Meanwhile, speaking at the same function, GARTH WILLIS, MINET GROUP CHAIRMAN, AND PRINCIPAL AT CAPITALWORKS, was excited with the opportunity of investing in a world class operation and one of Africa’s leading insurance brokers. “We are specifically looking to take advantage of opportunities to find solutions for the various local market needs, and securing Africa’s growing middles class,” said Mr. Willis, adding that “Capitalworks is looking forward to partnering with the Minet Group management team, which has grown the business to be the largest risk, and human capital advisory network on the continent.”

MINET GROUP CHIEF EXECUTIVE OFFICER JOE ONSANDO said the acquisition of AON Sub-Sahara Africa by Capitalworks entails embracing new technology and innovation, adding that, “the time has come to take the business through a new growth trajectory.”