En commission : African Trade Insurance Agency Bill Examined

The bill to authorise the President of the Republic to proceed with the Accession to the Agreement Establishing the African Trade Insurance Agency, signed on 18 May 2000 already adopted by the National Assembly was tabled during the plenary sitting of the Senate on December 9, 2019. After the bill was tabled in the plenary chaired by the Senior Vice President of the Senate, Aboubakary Abdoulaye, it was forwarded to the Foreign Affairs Committee of the House and its examination immediately followed.

The Minister of Finance, Louis Paul Motaze defended the bill in Committee in the presence of the Minister Delegate at the Presidency in charge of Relations with the Assemblies, Wakata Bolvine. Cameroon expressed its interest in becoming party to the Agreement since 2015.  Member States of the African Union, with World Bank support, established the African Trade Insurance Agency on May 18, 2000 and it is headquartered in Nairobi, Kenya. The agency is a financial body offering many advantages and services, to both the public and private sectors. The advantages include coverage through sovereign guarantee for funding of major projects, protection against political and financial risks, reduction of transaction costs and facilitation in obtaining funding. The organization operates through insurance, coinsurance and reinsurance mechanisms. It has two specificities that are attracting more investments for Member States and contributing towards increasing the level of trade on the African continent.

The Minister argued that Cameroon’s accession to the Agreement will help to boost trade and attract investment by reducing transaction cost, thus allowing exporters, importers and investors to have easier access to credit insurance, political risk insurance, coverage against insolvency and protection of foreign direct investment. Should the President of the Republic proceed with the Accession agreement, Cameroon will be recognized as full-fledged member of the agency.

Minister Louis Paul Motaze in the Finance and Budget Committee of the Senate defended the bill on the rules governing credit activities in the banking and credit unions sectors in Cameroon.

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