The Ministry of Finance (MoF) has directed the Ghana Revenue Authority (GRA) and the Bank of Ghana (BoG) to enforce the mandatory Local Cargo Insurance policy for all commercial imports into the country, effective February 1, 2026.

The directive, which is in line with the government’s commitment to strengthening the domestic insurance market, is in accordance with Section 222 of the Insurance Act, 2021 (Act 1061).

This measure was announced by the Minister of Finance, Dr Cassiel Ato Forson, in a speech read on his behalf at the 12th Presidential Investiture of the Ghana Insurers Association (GIA) in Accra yesterday.

It is intended to protect shippers, deepen local participation, retain insurance premiums within the economy, and support sustainable industry growth.

The intended policy comes at a time when there is a continued reliance on foreign insurers for cargo insurance, which has resulted in significant capital flight, depriving the local industry of much-needed revenue and growth opportunities.

Investiture

The event saw the induction of the Chief Executive Officer (CEO) of Star Assurance Ltd., Boatemaa Barfour-Awuah, as the 12th GIA President.

She succeeds the Managing Director of Ghana Reinsurance Company PLC, Seth Aklasi.

The other 10 board members were also sworn in at the event, which featured various practitioners from all branches of the profession.

The minister explained that the government recognised the need for the insurance industry to evolve in response to Ghana’s changing economic structure and demographic realities.

He noted that, while Ghana had made commendable progress over the years, insurance penetration remained modest, particularly among Micro, Small, and Medium Enterprises (MSMEs), informal sector operators, rural communities, women, and persons with disabilities.

He added that these groups were precisely the most vulnerable to economic shocks and least able to recover without adequate risk protection.

“This is why the government, through the Ministry of Finance, working closely with the National Insurance Commission, is pursuing a deliberate reform agenda aimed at deepening insurance penetration, strengthening consumer confidence, and positioning the industry as a driver of inclusive growth,” Dr Forson said. 

Acceptance

In her acceptance speech, Mrs Barfour-Awuah expressed gratitude for the confidence reposed in her leadership and pledged to work towards restoring trust, expanding protection, and strengthening the insurance industry.

Highlighting key industry challenges, she noted that the adoption of IFRS 17 and evolving regulatory demands were reshaping reporting, pricing, and profitability in the industry.

She, therefore, assured members that her administration would respond with stronger data governance, collaboration, and strategic leadership to advance the shared agenda of the insurance industry in Ghana.

The acting Commissioner of Insurance, Dr Abiba Zakariah, said the investiture of Mrs Barfour-Awuah came at a significant moment in the evolution of the insurance sector, where innovation met expectations of exponential growth. 

She said building on the commendable efforts of her predecessors, who placed the association on a firm and progressive trajectory, her assumption of office presented an opportunity to further strengthen the GIA's role as a unifying force and a strong advocate for professionalism, discipline and best practice within the industry.

“As Mrs Barfour-Awuah takes up the mantle of leadership at a time when the industry continues to consolidate reforms to strengthen financial resilience, it is our sincere hope that her tenure will foster greater cohesion among member companies and promote an ethically grounded insurance market.

“While the industry has made notable strides, challenges relating to public perception and trust persist. Under her leadership, we expect the association to contribute meaningfully to a positive shift that enhances public confidence in insurance,” she stated.