Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
THE Southern African Development Community (SADC) has resolved to harmonise third-party vehicle insurance schemes across its member states, a move set to significantly ease cross-border travel and bolster regional integration. This resolution, which focuses on either adopting the Comesa Yellow Card system or ensuring mutual recognition of national policies, emerged from the recent SADC Finance Ministers’ meeting held in Victoria Falls on Thursday.
Zimbabwe’s Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, who chairs the SADC Ministers of Finance, stressed the initiative’s critical role in promoting trade and mobility throughout the region in an exclusive interview with Zimpapers following the meeting.
Professor Ncube highlighted that the current challenges posed by differing insurance regulations underscore the need for a unified approach.
“Amongst several issues we discussed, one that stood out was the harmonisation of rules for recognising third-party insurance. For instance, under Comesa, there is the Yellow Card insurance scheme, which allows citizens to travel across borders with their vehicles without difficulty, as they are already insured.
“Seven SADC countries are members of Comesa and are already part of this scheme, while two or three others are piloting it. So, we are already seeing movement in that direction,” he said.
At present, motorists travelling across SADC face bureaucratic hurdles due to each country having its own third-party insurance requirements. This often results in delays at border posts, additional costs and, in some cases, the need to purchase separate insurance policies when entering different jurisdictions.
The Comesa Yellow Card system, already operational in several member states, provides a unified insurance certificate recognised across participating countries, thereby reducing these inefficiencies.
Professor Ncube said SADC’s resolution is to adopt a similar model while also exploring the mutual recognition of existing national insurance schemes.
“The resolution we made was to adopt the Comesa Yellow Card system, but also to consider mutual recognition of each other’s third-party insurance schemes. Ideally, we would have a single scheme, but if challenges arise, mutual recognition is a viable alternative. This is critical for supporting the movement of our citizens across the region,” he said.
For Zimbabwe, which shares borders with multiple SADC nations, the harmonisation of third-party insurance would be transformative. The country serves as a key transit corridor for regional trade, with major highways linking it to South Africa, Zambia, Botswana and Mozambique.
A unified insurance system would reduce transit costs for haulage trucks, buses and private motorists, ultimately boosting trade and tourism.
Zimbabwean insurers have previously raised concerns about the lack of reciprocity in third-party claims, where accidents involving foreign-registered vehicles often lead to lengthy compensation processes.
A harmonised system would streamline claims settlements and ensure that accident victims are adequately covered, regardless of their country of origin.
The push for insurance harmonisation aligns with SADC’s broader agenda of deepening regional integration. The regional bloc has been working towards removing trade barriers, implementing a free trade area and facilitating cross-border infrastructure projects. A standardised insurance framework would complement these efforts by easing the movement of people and goods.
While challenges remain — such as differing national regulations and the need for robust enforcement mechanisms — the political will demonstrated by SADC finance ministers signals a strong commitment to regional co-operation.
The SADC Secretariat will now engage with insurance regulators, private sector stakeholders and Comesa to finalise the framework for implementation.
