The directive, issued Tuesday in a circular to stakeholders and the insurance sector, is grounded in Section 12 of the Bank of South Sudan Act, 2011 (as amended in 2023), read together with Section 154 of the Banking and Other Financial Institutions Act, 2012 (as amended in 2023).
According to the circular, prospective insurers must also submit a detailed business plan and financial projections covering their first five years of operation, along with a certified copy of their Memorandum and Articles of Association proving that the applicant is a public liability company limited by shares.
In addition, new insurance companies are required to maintain a minimum paid-up capital of USD 5 million for foreign-owned firms and USD 2.5 million for locally owned firms. These thresholds are subject to periodic review.
The Central Bank said the measures are intended to “promote a vibrant and competitive financial sector through the development of a fair, safe, competitive, and stable insurance industry.”
It emphasized that this will be achieved through strengthening the legal and regulatory environment, promoting insurance as a risk management tool, expanding access to customer-centric products, mobilizing financial resources for development, increasing insurance penetration, and broadening financial inclusion.
Other requirements listed include a certified copy of the certificate of incorporation, company policies and governance instruments, audited financial statements covering at least three years for existing insurers, and operational licenses from relevant authorities.
Applicants must also present tax clearance certificates for shareholders, directors, and key management personnel, as well as certificates of good conduct for board members and senior executives.
Furthermore, insurance companies must specify their intended business category, demonstrate that shareholders possess integrity, financial strength, and the ability to inject further capital if necessary, and ensure that directors, auditors, actuaries, and senior managers have not been convicted of fraud, felony, or crimes involving dishonesty. Firms must also prove they have effective risk management systems in place.
The directive comes at a time when South Sudan’s insurance sector is already under pressure, with several companies struggling to stay afloat in the challenging economic environment, while others, such as UAP Insurance South Sudan, have opted to close shop.
While the Central Bank insists the new measures are designed to strengthen oversight and stability in the sector, industry observers warn that the costs could discourage new entrants. Existing companies are also grappling with higher annual license renewal fees of USD 5,000, while other service providers are required to pay USD 1,000.
The Bank has cautioned that it will impose administrative and financial sanctions on insurers, intermediaries, and senior managers who fail to comply with the new directive. The circular was enforced from the date of its signature on 08/09/2025.
