COTE D’IVOIRE Law and Practice Contributed by: Assemian Kouakou, Innocent Kouakou, Francky Lukanda and Lamine N’Diaye, Ofori Conseils Africa LLP
as export credit insurance, benefit from a very low tax rate of 0.1%. Regarding reinsurance, premiums are exempt from tax when the risk covered is located outside Côte d’Ivoire. This exemption also applies when the risk does not concern an industrial, commercial or agricul- tural establishment located in Côte d’Ivoire. 3. Overseas Firms Doing Business in the Jurisdiction 3.1 Overseas-Based Insurers or Reinsurers Approach to Foreign Insurers and Reinsurers As a member country of CIMA, Côte d’Ivoire does not allow foreign insurance/reinsurance companies to operate freely on its territory: any foreign compa- ny wishing to operate in Côte d’Ivoire must obtain authorisation in accordance with the CIMA Code, with authorisation being granted on a branch-by-branch basis and the application of a company outside the CIMA area including specific documents sent via the national minister to the CRCA. Restrictions on Foreign Licences and Recognitions In the CIMA zone, no foreign licence is automatically recognised: there is no prudential passport or equiva- lent. Any foreign insurance company must obtain spe- cific authorisation, issued by the Minister of Finances after approval by the CRCA, before being in a position to operate in Côte d’Ivoire. Access for foreign reinsur- ers is also limited; they may only operate if they have a local presence, are covered by a bilateral agreement or are rated by a recognised international agency, in accordance with Articles 812–813 of the CIMA Code. The terms and conditions for establishment are the same. • Branch of a foreign company – authorised, but subject to the full approval procedure (submission of application, national review, and CRCA inspec- tion). • Local subsidiary – also subject to regulatory approval, with capitalisation and governance requirements identical to those of Ivorian entities.
In short, CIMA regulations exclude any form of “pass- porting”; no foreign authorisation is automatically valid, and any company wishing to operate must go through the approval procedure provided for in the CIMA Code. The CIMA Code imposes strict specialisation: a com- pany may only operate in the branches for which it has been approved. In reinsurance, recent reforms have tightened restrictions on transfers abroad and favour the use of regional or local reinsurers. Practical Steps for Obtaining Authorisation/ Recognition for Foreign Reinsurance Companies To obtain authorisation in Côte d’Ivoire, the foreign reinsurance company must first compile a complete file in accordance with Article 806 of the CIMA Code, including the articles of association, the business plan, the financial statements and a certificate of sol- vency from the head office. This file is then officially forwarded by the Minister of Finances to the CRCA for review. The CRCA, in co-ordination with the national authority, conducts a prudential review of the com- pany’s solvency, governance, AML/CFT compliance and technical capabilities. If the decision is favour- able, authorisation is granted by decree published in the official journal, and the company’s activities must be strictly limited to the lines of business for which authorisation has been granted. Post-Brexit Changes No specific post-Brexit changes affect the CIMA regime in Côte d’Ivoire, as the framework is based on common regional rules with no direct link to the European Union. British insurers are treated like any foreign company outside the CIMA zone, requiring authorisation and local presence. 3.2 Fronting In the CIMA zone, including Côte d’Ivoire, fronting is permitted but remains strictly regulated by the pru- dential requirements of the CIMA Code and the CRCA doctrine. Local insurers may cede a significant por- tion of the risk to reinsurers, including foreign reinsur- ers, provided that the cedant retains 50% of the risk. Pure fronting schemes, leading to a total absence of retention, are, in principle, prohibited and liable to be sanctioned.
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