Maravi

Globalisation making rich countries wealthier - Banda

Globalisation making rich countries wealthier - Banda
By Joan Chirwa in Livingstone
Tuesday July 17, 2007 [04:00]

VICE-President Rupiah Banda yesterday said globalisation has continued to make rich countries wealthier while the developing countries were still living in abject poverty. During the opening of the 16th Annual General Assembly of ZEP-RE in Livingstone, Vice-President Banda said countries in the Common Market for Eastern and Southern Africa (COMESA) region should not lose count of the progress made, although clouded by the continued increase in levels of economic and social disparities within and outside the region.

“The same inequity also affects the nations of the world with developing nations continuing to get the short end of the stick in this new order of a globalised singular world economy,” Vice-President Banda said. “We all do appreciate that globalisation has opened up opportunities for development and significant socio-economic transformation.

However, this trend has come with challenges and shortcomings, the obvious one being that some of our countries and industries including the insurance industry, are facing formidable competition in their respective areas of business.”

Vice-President Banda said the African continent was likely to be left out or excluded from the integration process if challenges brought about by globalisation were not quickly addressed.

“Our fear is that unless we develop quicker counter measures, then our region is likely to be left behind from the integration process in the world economy,” Vice-President Banda said. “Globalisation has changed the whole spectrum of the insurance industry, so much that a catastrophe occurring on the end of the world likely impacts on the business operations of companies in the region.”

He urged institutions in Zambia and the region as a whole to recognise risks or opportunities for them to effectively respond to change.

“I do believe, however, that not all is lost,” Vice-President Banda said. “There is need for institutions in the region to be forever on guard and quickly recognise situations that avail risk or opportunity in order that they may respond to these changes as they occur. Such action is pertinent if the region is to remain competitive.”

ZEP-RE is a PTA Reinsurance organisation of the COMESA region that has been in existence for over 15 years, with Zambia being its founding member.

Its core responsibility is that of promoting trade, development and integration in the insurance and reinsurance sector among member countries that include Angola, Burundi, Comoros, Djibouti, Eritrea, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Rwanda, Somali, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

Earlier, ZEP-RE board chairman Peter Kenneth said the institution had continued to grow over the years, with a premium income of US $32 million recorded in 2006.

“ZEP-RE’s achievements include writing business from over 50 countries in Africa, Asia and Middle East,” Kenneth said. “We will soon be declaring dividends the third time in a row.”

ZEP-RE has in the last three years scored among other achievements, a 33 per cent increase in premiums written from US $24 million in 2003 to US $32 million in 2006 and profits of US $2.5 million in 2006.

And at a welcoming cocktail on Sunday, Zambia State Insurance Corporation (ZSIC) managing director Irene Muyenga said her institution was working at enhancing products and services that were only partially meeting the needs of its clients and at the same time retire those that had not met the expectations of the market.

posted by MrK @ 6:28 AM