GOVERNMENT is pressing ahead with long-awaited reforms to localise marine insurance, a policy that officials and analysts say will support the domestic insurance sector, preserve foreign currency reserves and boost economic self-sufficiency.
In his Mid-Term Budget Review Statement, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube confirmed that the Government is finalising regulations to operationalise the domestication of marine insurance, which he first announced in November 2024 as part of the 2025 national budget.
“Drafting of the regulations that will govern the provision of marine insurance is in progress,” said Minister Ncube. “This will ensure local insurers provide coverage for maritime activities, retaining premiums within the country and strengthening the domestic insurance sector.”
The move is a key part of the Government’s broader agenda to plug capital leakages, deepen financial markets and support local firms.
Until now, most importers and exporters have relied on foreign insurers, often through offshore shipping arrangements, in a system that drains millions in premiums each year from the limited foreign currency pool.
In his earlier remarks to Parliament in November, the minister was blunt about the cost of the status quo, “There is no law mandating the use of local marine insurance. This has allowed foreign players to dominate the market, starving our insurers of opportunities and costing the economy valuable foreign exchange.”
Marine insurance covers cargo losses or damage during shipping, whether by sea, air or road, and is vital to international trade. Zimbabwe’s annual import bill, which averages over US$7 billion, presents a lucrative but underutilised opportunity for local insurers.
Analysts say localising these policies could redirect tens of millions in premiums into the domestic economy.
“This policy is long overdue,” said Garikai Ncube, a veteran insurance broker. “Through mandating the use of local insurers, we are not only boosting the sector, we are building an entire value chain of services, jobs, and capital retention.”
Industry players have welcomed the announcement, seeing it as a significant shift in favour of local economic empowerment. Vincent Magura, an insurance consultant, said domestic insurers stand to benefit from capacity-building and investment opportunities as they take on more complex international risks.
“This initiative creates space for skill development, better capital management and overall resilience in our insurance ecosystem,” said Mr Magura. “We are now in a position to develop specialist products, reinsurance arrangements, and claims systems tailored to the realities of Zimbabwean businesses.”
He noted that while the new mandate could stretch current capacities, the benefits far outweigh the short-term implementation challenges.
Economic analyst Namatai Maeresera said the localisation effort aligns well with Zimbabwe’s macroeconomic targets of boosting local currency stability and improving fiscal health.
“Every dollar saved from going offshore strengthens our balance of payments,” he said. “This supports the currency and allows more forex to be directed toward productive imports like fuel, medicines, and capital equipment.”
Mr Maeresera added that an invigorated insurance sector could also drive growth in adjacent industries such as legal services, transport logistics, and IT systems for claims management.
However, concerns linger about the preparedness of local insurers to handle large marine claims or provide internationally recognised cover.
In response, Minister Ncube pledged Government backing to develop the needed capacity.
“We are working with IPEC and the industry to ensure readiness,” he said. “This includes regulatory reforms, training programmes, and exploring public-private partnerships to bridge initial gaps.”
As the regulatory drafting nears completion, attention is now on implementation timelines and industry compliance. Stakeholders expect that once gazetted, the new rules will immediately mandate domestic cover for all imported and exported goods.
With political support and growing enthusiasm from industry, Zimbabwe’s marine insurance reform may soon become a model for localisation in other underdeveloped sectors.
For now, the message is clear, Government wants to do business at home, and keep its money here too.
