Posted by: africanpressorganization | 16 August 2010

EAC meeting on capital markets, insurance ends in Moshi

 


 

 

EAC meeting on capital markets, insurance ends in Moshi

 

 

ARUSHA, Tanzania, August 16, 2010/African Press Organization (APO)/ — The meeting of the EAC Capital Markets Development, Insurance and Pension Committee (CMIPC) ended Saturday 14 August 2010 in Moshi, Tanzania with participants calling for strong commitment and support to the EAC financial sector integration agenda by the Partner States.

The meeting, which was chaired by Mr Gabriel Kitua, the Chief Executive Officer of the  Dar es Salaam Stock Exchange of the United Republic of Tanzania, was attended by Dr Abdiel G. Abayo, Director, Market Supervision and Market Development Capital Markets and Securities Authority, The United Republic of Tanzania; Mr. Hezron M. Momanyi, Asst Director Ministry of EAC Republic of Kenya; Ms. Anne Mpendo, Director Research and Development Capital Markets Authority, Republic of Uganda; Mr Celestin Rwabukumba, Operations Manager, Capital Market Advisory Council, Republic of Rwanda; Mr. Audace Nsabimana, Director, Insurance Regulatory Authority, Republic of Burundi; and other senior officials from the Partner States responsible for Capital Markets Development, Insurance and Pension.

Mr. Alloys Mutabingwa, EAC Deputy Secretary General (Planning and Infrastructure), Mr. Tharcisse Kadede, Principal Economist (Fiscal and Monetary) and Mr. Robert Maate, Senior Statistician were also present.

Welcoming delegates to the EAC meeting, Mr. Mutabingwa noted that the importance of Capital Markets, Insurance and Pensions sectors in achieving convergence in the financial sector cannot be overemphasized as the EAC makes progress in the implementation of the Common Market Protocol and moves towards the establishment of the Monetary Union. 

He said the EAC Council of Ministers relies on decisions and recommendations from the Committee for development of policy directions towards a sound, competitive and efficient integrated financial market in the region. The committee was therefore the fulcrum for moving the financial sector to greater heights.

The Deputy Secretary General disclosed that studies on the EAC Capital Markets Regionalization Strategy and Bonds Market Development and validation of the reports were done in November 2008 with the support from the IFC, the World Bank and SIDA. He said the last CMIPC meeting held in Nairobi in May 2010 discussed the reports of the two studies and recommended that there was need for stakeholders in the respective EAC Partner States to discuss the report on the EAC Capital Markets Regionalization programme with a view to implement the recommendations.

Mr. Mutabingwa noted that Kenya, Rwanda and Uganda had submitted their comments while Tanzania and Burundi were yet to submit their comments to the Secretariat. In this context, the EAC Capital Markets Development, Insurance and Pension Committee (CMIPC) urged the two Partner States to submit their comments before the end of September this year.

The meeting considered the progress on implementation of the previous Council decisions and noted that cooperation in matters of the Insurance and Pensions sectors were not well covered in Chapter 14 of the Treaty for the Establishment of the East African Community.

It further noted that a draft text to comprehensively cover the sectors was forwarded to the High Level Task Force (HLTF) on the amendment of the EAC Treaty. However the process of amending the Treaty was put on hold by the Council pending the completion of the negotiations of the Annexes of the Common Market Protocol.

The meeting noted that the HLTF on the Common Market Protocol was currently considering the annex on the Pensions sector. The meeting also noted that the HLTF on the amendment of the Treaty considered and made proposals towards amendment of the Treaty to cover the insurance sector. It was noted that the HLTF on the Common Market does not discuss any implementation modality regarding insurance in the context of the Common Market Protocol.

The meeting recommended the swift operationalization of the Technical Sub committees that were created during the last CMIPC for efficient running of the Committee given the expanded mandate i.e. Capital Markets, Pensions and Insurance; and urged the EAC Secretariat to propose modus operandi for consideration in the next CMIPC meeting.

About the CMIPC

Working through the Capital Markets Development, Insurance and Pension Committee (CMIPC) the EAC is mandated to enhance cooperation in the EAC financial sector through harmonization of policies on Capital Markets, Insurance and Pensions. This cooperation is in line with Chapter 14 (Article 85) of the Treaty for the Establishment of the East African Community. Amendments to the Treaty to address cooperation in the areas of Insurance and Pensions have also been proposed.

 

SOURCE 

East African Community (EAC)


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