Trade Minister Calls for Regional Insurance Solutions for SMEs

Minister of Trade, Industrialisation, Business and Tourism Samuel Itaye has called on the Southern African Development Community (SADC) Committee of Insurance, Securities and Non-Banking Financial Authorities (CISNA) to develop practical insurance and financial products tailored to the needs of small and medium enterprises (SMEs).

Itaye said such products should particularly support Malawian cooperatives and entrepreneurs engaged in sectors such as agriculture, manufacturing and cross-border trade.

He made the call on Tuesday when he officially opened the 49th CISNA Annual General Meeting in Lilongwe.

The Minister said SMEs are central to economic activity across the SADC region and therefore require financial and insurance solutions that reflect the realities of businesses operating across national borders.

“When we talk about an organisation like this, it cuts across different borders,” Itaye said.

He said a Malawian businessperson insured in Malawi should be able to enjoy similar protection when conducting business in other SADC countries.

“If somebody, for instance, is a cross-border exporter and is insured in Malawi, we should ensure that when he goes to Tanzania or Zambia, he should also be insured on the same basis,” he said.

Itaye also urged CISNA to strengthen regulatory governance, transparency and coordination among member states to make financial services more accessible and responsive to the needs of businesses.

He said harmonising financial products and regulatory frameworks would help create a more predictable operating environment for SMEs and regulated financial institutions across the region.

Reserve Bank of Malawi Governor George Partridge said the CISNA meeting was important as it brings together regulators overseeing non-bank financial institutions, including cooperatives, capital markets, insurance companies and pension funds.

Partridge said stronger regional cooperation would help harmonise legal and supervisory frameworks while improving oversight of financial institutions.

He said the increasing integration of SADC economies means financial risks can easily spread across national borders.

“Risks do cross borders because these are open markets and part of the SADC region,” Partridge said.

Partridge stressed the need for regulatory authorities to avoid inconsistencies, warning that a financial risk originating in one country could quickly affect other countries within the region.

CISNA Chairperson Kenneth Matomola said the meeting was focusing on market development, regulatory harmonisation, legislative instruments and capacity building.

Matomola said the discussions were aimed at removing barriers to financial-sector development and aligning the mandates of regulators across SADC member states.

He, however, said achieving CISNA’s objectives would require strong political commitment from member states.

The 49th CISNA Annual General Meeting is scheduled to conclude on October 9, with members expected to elect a new chairperson and other members of the executive committee.