Ethiopian Reinsurance, established eight years ago with an initial capital of Birr 1 billion, announced that it has saved the country USD 50 million in foreign currency. The company, which provides reinsurance services to Ethiopian insurance companies, has played a crucial role in retaining funds that were previously spent abroad.

Fikru Tsegaye, Executive Director of Ethiopian Reinsurance, stated that before the company’s establishment, Ethiopian insurers relied on foreign reinsurance firms, causing 30% of the country’s reinsurance spending to flow out. Since its inception, Ethiopian Reinsurance has gained the trust of local institutions and expanded its services to 10 African countries, thereby earning valuable foreign currency.

Fikru outlined a ten-year strategic plan, divided into three phases, aimed at expanding the company's operations and improving its ranking. Ethiopia currently ranks 29th out of 52 reinsurance firms in Africa, and the company aspires to significantly enhance its position. Ethiopian Reinsurance's success highlights the growing role of local companies in strengthening the national economy.

Source: Sheger FM 102.1