WASHINGTON, April 28—The International
Finance Corporation has invested in Tanzania’s first private insurance
company since legislation privatizing the insurance industry. IFC
made an equity investment of TSh 187.5 million (US$285,000) in Jubilee
Insurance Company of Tanzania, Ltd. (JICT).
Jubilee Tanzania will provide general, non-life insurance (except aviation),
and also plans to offer life insurance after one or two years.
The Tanzanian insurance industry had been nationalized in 1967. In
November 1996, the Tanzanian Parliament passed the Insurance Act opening
business to private companies, and the legislation received presidential
assent in February 1997.
The Jubilee Insurance Company was incorporated 60 years ago, with headquarters
in Mombasa, Kenya. Jubilee Insurance Company of Kenya will be the technical
partner in this project. Jubilee Tanzania is capitalized at US$2
million. The shareholding structure will be: Jubilee Insurance Kenya,
40%; AKFED, 15%; IFC, 15%; Jubilee Uganda, 3%; Jubilee Mauritius, 3%; and
local Tanzanian investors 24%.
Michael Hooper, IFC’s resident representative in Nairobi who signed on
behalf of IFC, predicted a bright future for Jubilee Insurance. He
said Jubilee would be instrumental in deepening and broadening the financial
sector, noting that it was the first private sector insurance company in
Tanzania since the liberalization of the economy in the mid-1980s.
When Tanzania liberalized its economy, annual GDP growth rose from an average
of 2 percent in the previous decade to over 4 percent during the 1986-95
period and nearly 5 percent by 1996. The decline in per capita income
during the late 1970s and early 1980s has been reversed.
IFC, part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets and providing technical assistance and
advice to governments and businesses.