Ghana’s Enterprise Insurance Company and two other partners --the International Finance Corporation IFC in Washington and the African Life Assurance Company in South Africa have signed a joint venture deal for the establishment and operation of a life assurance company in Ghana.

The new company to be known as the Enterprise Life Assurance Company starts with an initial capital of 7.5 billion cedis and would be an incorporated subsidiary of EIC. The other shareholders are IFC and African Life a South African listed company quoted company. Currently Life assurance contributes about 12 per cent to total gross premium generated from the Industry in Ghana.

The Ghanaian economy starved for long term financing is expected benefit as this agreement. This is because the operations of a vibrant life assurance sector would lead to the mobilisation of long- term funds for redistribution to long term ventures.