The council of insurance ministers of the CIMA zone decided on April 8, 2016, to conduct an increase in the minimum required share capital for limited companies and the establishment fund for mutual insurance companies in the CIMA zone.
For anonymous insurance companies, the share capital has increased from 1 billion FCFA (1.7 million USD) to 5 billion FCFA (8.7 million USD).
The companies currently operating have a period of three years to bring their capital to at least 3 billion FCFA (5.2 million USD) and five years to raise it to 5 billion FCFA (8.7 million USD).
Each shareholder must pay before the final constitution, at least three quarters (3/4) of the amount of paid shares subscribed by it.
The release of the balance must be within a period not exceeding three years from the registration in the commercial register.
For mutual insurance, the establishment fund should be a minimum of 3 billion FCFA (5.2 million USD). Companies in activity with an establishment fund below this minimum, have a three-year period to bring their settlement fund to 2 billion FCFA (3.5 million USD) and a five-year period to bring it to 3 billion FCFA (5.2 million USD) from the date of entry into force of these provisions.
According to the Special FANAF 2014 figures [4] that can be consulted on our site, only three companies in the CIMA zone met, at the end of 2014, the new regulatory requirements.
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