IFC proposes $50 million guarantee for ZEP-RE to expand insurance coverage across Africa

The International Finance Corporation (IFC) is proposing a $50 million guarantee facility for ZEP-RE (PTA Reinsurance Company) to strengthen the reinsurer’s underwriting capacity and expand insurance coverage across African markets.

The Nairobi-based institution plays a key role in supporting insurers across the continent. Through the proposed guarantee, IFC seeks to enable ZEP-RE to underwrite additional reinsurance contracts while improving financial resilience within Africa’s insurance sector.

Strengthening Africa’s reinsurance capacity
The proposed guarantee will cover reinsurance credit risk, enabling ZEP-RE to underwrite additional, higher-quality and more profitable business across its African markets. By strengthening its financial capacity, the facility is expected to help the reinsurer expand its outreach while improving performance and resilience within Africa’s insurance sector.

The investment will also be complemented by advisory services designed to support the launch and scaling of digitally driven de-risking solutions for smallholder farmers and small and medium-sized enterprises (SMEs), including women-owned businesses. These solutions aim to reduce financial vulnerability while promoting broader insurance adoption across underserved communities.

ZEP-RE’s role in Africa’s insurance market
Established in 1990 through an agreement among Heads of State and Governments of the former Preferential Trade Area, now the Common Market for Eastern and Southern Africa (COMESA), ZEP-RE was created to strengthen the insurance and reinsurance industries across the region and build local capacity.

Today, the company provides a full range of reinsurance products alongside direct microinsurance solutions, leveraging digital platforms and strategic partnerships to close Africa’s protection gap. With headquarters in Nairobi and eight regional hubs across the continent, ZEP-RE serves insurers and businesses in multiple African markets.

Expanding inclusive insurance solutions
Through IFC’s proposed guarantee facility and advisory support, ZEP-RE is expected to scale innovative insurance offerings that help businesses and farmers manage risk more effectively. The initiative reflects a broader push by development finance institutions to expand insurance coverage and strengthen financial resilience in emerging markets.

By combining capital support with digital innovation, the project positions ZEP-RE to deepen its footprint across Africa while supporting inclusive growth and strengthening the continent’s risk-management ecosystem.