In June, the Insurance team within the Financial Institutions Group (FIG) conducted a business development mission to Senegal and Côte d’Ivoire. The mission was jointly held with Investment and Advisory colleagues, including both global and local teams, such as Florence Boupda Ngueda––FIG Global Sector Manager for Insurance, Housing and DARP; Astou Ryanna Dem––Investment Analyst; James Smouse–– Principal Investment Officer, Head of Insurance; and Shadreck Mapfumo––Senior Insurance Specialist. The mission highlighted some exciting opportunities to support the growth of the insurance markets in both countries and pointed out that across the life, non-life, and reinsurance sectors, there is clear potential for IFC to provide funding and advisory support, particularly to help address capital needs and to enable domestic or regional expansion.

Below is a summary of our colleagues’ observations from meetings with a range of stakeholders, including (re)insurance and asset management companies.

What We Learned
Much like in other parts of Africa, insurance companies in these markets are actively looking for capital solutions, including equity, subordinated debt, and innovative risk-sharing mechanisms. During the meetings, we noticed that deal sizes for West Africa are likely to be small but would have noticeable impact and offer IFC the opportunity to bundle several products for certain stakeholders which will enable optimum financing structure for the client. 

One such solution generating interest is our proposed Reinsurance Credit Risk Guarantee (RCRG). This tool could make a significant difference for regional reinsurers who are currently excluded from writing high-quality reinsurance business due to credit rating requirements (typically a minimum of A-). The RCRG would help bridge this gap, opening doors to better business opportunities. 

As Mr. Mapfumo commented “the IFC has traditionally supported the insurance industry through equity and subordinated debt. The RCRP is one of several new investment instruments we are exploring. This initiative aims to help risk carriers in emerging markets grow and strengthen their balance sheets, enabling them to keep more premiums on their balance sheets and to venture into inclusive insurance”.

Inclusive Insurance: A Key Focus
The team also identified strong demand for Advisory Services in the inclusive insurance space. This includes support for products designed to serve smallholder farmers, SMEs, women and women-owned businesses and low-income households, groups often underserved by traditional insurance offerings. 

On this point, Astou Dem added that to support regional expansion, IFC must tailor its investment and advisory tools to the realities insurers face in the West African market, from capital constraints to limited access to cross-border business due to credit rating thresholds. Given the relatively small size of regional (re)insurers, aligning with these needs also means being flexible on investment size to match the capacity and maturity of local players.

Looking back, IFC brings a strong foundation of past advisory engagement in both markets. In Côte d’Ivoire, previous work under GIIF included a feasibility study on index insurance, product launches with local insurers Atlantique Assurances Cote d’Ivoire and AXA-Cote d’Ivoire, and successful payouts to farmers in drought-affected regions. In Senegal, GIIF focused on market development and capacity-building for index-based agriculture insurance. Key activities included regional training sessions for insurance professionals across francophone Africa, a feasibility study on mobile-based distribution, and technical assistance to CNAAS, the national agricultural insurer. GIIF’s work also supported the development of an insurtech strategy and informed national subsidy reform efforts.

Looking Ahead
Reflecting on the mission, Ms. Florence Boupda Ngueda shared this observation: 

“These insights reaffirm our belief that tailored investment and advisory solutions can have a real impact in strengthening the region’s insurance sector. IFC is uniquely positioned to develop a long-term engagement strategy that both advances industry-wide solutions and extends long-term support to underserved market segments. As a team, we see that designing flexible solutions that reflect local market dynamics, and building inclusive partnerships by collaborating with governments, insurers, and tech innovators to reach traditionally underserved populations are some of the key strategic pillars of our vision. We are excited about the possibilities and look forward to working with clients to drive growth and unlock more opportunities in the region.”