Ouagadougou—The Burkinabe government announced the formation of a new reinsurance company, with the majority of its shares to be owned by the state, set to begin operations in 2025.

According to Burkina Information Agency, Dr. Aboubakar Nacanabo, the Minister in charge of the economy, stated during a recent Council of Ministers meeting that the government has approved a decree for the creation of a reinsurance company. This new entity will see the state holding a 51% majority stake, while the remaining 49% will be owned by various insurance companies operating within Burkina Faso.

The establishment of this reinsurance firm is part of a broader strategy to enhance the government’s oversight of the insurance market and secure the operational sustainability of the company. Dr. Nacanabo highlighted that this initiative, conducted in collaboration with local insurance providers, aims to reduce the outward flow of foreign currency associated with reinsurance premium payments.

The government also expects that the formation of this company will help organize the local insurance market more effectively to better cater to the needs of its customers.