Ghana Reinsurance Company requires more than US$52.97 million capital, if it is to compete globally in the oil and gas, and construction sectors, the Ministry of Finance has revealed.

According to the ministry, the company’s ability to raise such capital, will enable it compete not only in the domestic space, but also on the international level, with giants like Kenya Re, Munich Re and Africa Re.

Inaugurating a five-member board for the state-owned insurer of insurers, a Deputy Minister of Finance, Abena Osei Opare, urged the board to help raise the financing for the company to meet its targets.

Ghana Re controls about 60 percent of the local re-insurance market as at December 2015. Its international business constitutes 33 percent of gross premium, whilst the local market constitutes the rest of the 67 percent.

She explained that the reinsurance sector was very crucial to providing capacity, creating stability, strengthening of finances, and mobilisation of funds investment.

“The insurance industry has become one of the fastest growing industries in Africa spearheading intense competition, continuous growth and product innovation,” the minister noted.

“Against this backdrop,” she added, “Government’s agenda is to support the growth of the insurance industry in Ghana, given the growing population, increased client sophistication, low penetration rates, regulatory initiatives and positive economic trends.”

Referring to Act 921 of the Public Financial Management ACT, 2016, Madam Abena Osei urged the board to establish and maintain policies, procedures, risk management and internal control systems, and governance and management practices that will ensure that Ghana Re manages its resources prudently and effectively to achieve its objectives.

The new Board Chairman, George Otoo, pledged the board’s commitment to provide the vision needed to enable Ghana Re support the country’s economic development.

“It is our duty, as incoming directors, to build upon the successes chalked by this company over the years. We will position Ghana Re to offer the needed financial and human capacity to support insurance companies both in Ghana and Africa,” he said.

Other members of the board include: George Mensah; Francis Sapara Grant, Marian Mensah; Jennifer Owusu; and Franklin Hayford.