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The Challenges of Mandatory Insurance in Ghana

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Roger A. Agana insurance in ghana

By Roger A. Agana

In Ghana, vehicle insurance is a legal requirement to protect road users.

However, the reality of making an insurance claim reveals a system fraught with obstacles, leaving many Ghanaians in dire need of more financial support, a burden that is often too heavy to bear.

The process begins with obtaining a police report, a critical document to initiate any insurance claim.

This report, however, comes at a cost—often an unofficial payment to the police.

These payments, though pervasive, are not officially sanctioned, adding an unfair and unjust financial burden on accident victims, a stark reminder of the system’s inherent unfairness.

Even with collecting premiums from vehicle owners year after year, insurance companies, expected to provide financial support in times of need, are notoriously tricky when paying out claims.

Claimants must provide extensive documentation and often need legal representation to prove their case.

The costs associated with pursuing a claim can be prohibitive, particularly for those who have significant financial resources.

For many, the process is so cumbersome and expensive that they give up, rendering their insurance worthless. This not only undermines the purpose of the insurance but also leaves many Ghanaians in a vulnerable position.

This system disproportionately favours those with financial means who can afford to navigate the complexities of the claim process.

For the average Ghanaian, the mandatory insurance policy feels less like protection and more like a form of legalised extortion, where they are forced to pay for a service that is not readily available when needed.

Critics argue that the system is designed to extract money from citizens without offering them the security that insurance is supposed to provide.

Civil society organisations and public figures have increasingly spoken out against the mandatory insurance policy.

Dr Badu Kweku, Executive Director of the Ghana Institute of Policy and Strategy Analysis, stated, “The current insurance system in Ghana is failing the people it is supposed to protect.

It is time for the government to reconsider the mandatory nature of vehicle insurance and explore alternatives that genuinely serve the public interest.”

The involvement of the police adds another layer of complexity and frustration.

The Ghana Police Service, responsible for enforcing the law, is quick to arrest or fine individuals for not renewing their insurance policies.

Yet, when assisting those same individuals in making a claim, the police often demand unofficial payments.

This dynamic has led to calls for an overhaul of the system, with suggestions ranging from stricter regulation of insurance companies to the complete reevaluation of the mandatory nature of vehicle insurance.

Legal analysts argue that the police should not be involved in insurance matters beyond ensuring essential compliance, as their involvement often incentivises corruption.

Whether insurance should remain mandatory is a topic of growing debate. While the original intent was to protect all road users, implementing this policy has raised concerns about its fairness.

Some experts advocate for reforms to make the process more transparent and accessible. In contrast, others suggest that insurance should be optional, allowing individuals to decide whether to invest in coverage.

Dr Esi Yankah, a prominent economist, questions the efficacy of the current system, stating, “If citizens are forced to pay for a service they cannot access without additional financial strain, then the system is not working.

It may be time to consider making insurance optional, with a focus on consumer education and empowerment.”

The mandatory vehicle insurance system in Ghana is in dire need of reform.

The combination of bureaucratic inefficiencies, such as long waiting times for claim processing, excessive documentation requirements, corruption, and financial burdens, has led to widespread dissatisfaction and mistrust.

A more equitable and transparent system is not just a desire but a necessity that genuinely protects and serves the people’s interests.

Only through comprehensive reform, urgently needed, can insurance in Ghana fulfil its intended purpose of providing security and peace of mind.

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Russia Expands Military-Technical Cooperation With African Partners

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Military-Technical Cooperation

By Kestér Kenn Klomegâh

Despite geopolitical complexities, tensions and pressure, Russia’s military arms and weaponry sales earned approximately $15 billion at the closure of 2025, according to Kremlin report. At the regular session, chaired by Russian President Vladimir Putin on Jan. 30, the Commission on Military and Technical Cooperation with Foreign Countries analyzed the results of its work for 2025, and defined plans for the future.

It was noted that the system of military-technical cooperation continued to operate in difficult conditions, and with increased pressure from the Western countries to block business relations with Russia. The meeting, however, admitted that export contracts have generally performed sustainably. Russian military products were exported to more than 30 countries last year, and the amount of foreign exchange exceeded $15 billion.

Such results provide an additional opportunity to direct funds to the modernization of OPC enterprises, to the expansion of their production capacities, and to advanced research. It is also important that at these enterprises a significant volume of products is civilian products.

The Russian system of military-technical cooperation has not only demonstrated effectiveness and high resilience, but has created fundamental structures, which allow to significantly expand the “geography” of supplies of products of military purpose and, thus strengthen the position of Russia’s leader and employer advanced weapons systems – proven, tested in real combat conditions.

Thanks to the employees of the Federal Service for Military Technical Cooperation and Rosoboronexport, the staff of OPC enterprises for their good faith. Within the framework of the new federal project “Development of military-technical cooperation of Russia with foreign countries” for the period 2026-2028, additional measures of support are introduced. Further effective use of existing financial and other support mechanisms and instruments is extremely important because the volumes of military exports in accordance with the 2026 plan.

Special attention would be paid to the expansion of military-technological cooperation and partnerships, with 14 states already implementing or in development more than 340 such projects.

Future plans will allow to improve the characteristics of existing weapons and equipment and to develop new promising models, including those in demand on global markets, among other issues – the development of strategic areas of military-technical cooperation, and above all, with partners on the CIS and the CSTO. This is one of the priority tasks to strengthen both bilateral and multilateral relations, ensuring stability and security in Eurasia.

From January 2026, Russia chairs the CSTO, and this requires working systematically with partners, including comprehensive approaches to expanding military-technical relations. New prospects open up for deepening military-technical cooperation and with countries in other regions, including with states on the African continent. Russia has been historically strong and trusting relationships with African countries. In different years even the USSR, and then Russia supplied African countries with a significant amount of weapons and military equipment, trained specialists on their production, operation, repair, as well as military personnel.

Today, despite pressure from the West, African partners express readiness to expand relations with Russia in the military and military-technical fields. It is not only about increasing supplies of Russian military exports, but also about the purchase of other weapons, other materials and products. Russia has undertaken comprehensive maintenance of previously delivered equipment, organization of licensed production of Russian military products and some other important issues. In general, African countries are sufficient for consideration today.

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Trump Picks Kevin Warsh to Succeed Jerome Powell as Federal Reserve Chair

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Kevin Warsh

By Adedapo Adesanya

President Donald Trump has named Mr Kevin Warsh as the successor to Mr Jerome Powell as the Federal Reserve chair, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank.

The decision culminates a process that officially began last summer but started much earlier than that, with President Trump launching a criticism against the Powell-led US central bank almost since he took the job in 2018.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Mr Trump said in a Truth Social post announcing the selection.

US analysts noted that the 55-year old appear not to ripple market because of his previous experience at the apex bank as Governor, with others saying he wouldn’t always do the bidding of the American president.

If approved by the US Senate, Mr Warsh will take over the position in May, when Mr Powell’s term expires.

Despite having argued for reductions recently, “Warsh has a long hawkish history that markets have not forgotten,” one analyst told Bloomberg.

President Trump has castigated Mr Powell for not lowering interest rates more quickly. His administration also launched a criminal investigation of Powell and the Federal Reserve earlier this month, which led Mr Powell to issue an extraordinary rebuke of President Trump’s efforts to politicize the independent central bank.

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BRICS Agenda, United States Global Dominance and Africa’s Development Priorities

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Vsevolod Sviridov BRICS Agenda

By Kestér Kenn Klomegâh

Donald Trump has been leading the United States as its president since January 2025. Washington’s priority is to Make America Great Again (MAGA). Trump’s tariffs have rippled many economies from Latin America through Asian region to the continent of Africa. Trump’s Davos speech has explicitly revealed building a ‘new world order’ based on dominance rather than trust. He has also initiated whirlwind steps to annex Greenland, while further created the Board of Peace, aimed at helping end the two-year war between Israel and Hamas in Gaza and to oversee reconstruction. Trump is handling the three-year old Russia-Ukraine crisis, and other deep-seated religious and ethnic conflicts in Africa.

These emerging trends, at least in a considerable short term, are influencing BRICS which has increased its geopolitical importance, and focusing on uniting the countries in the Global East and Global South. From historical records, BRICS, described as non-western organization, and is loosing its coherence primarily due to differences in geopolitical interests and multinational alignments, and of course, a number of members face threats from the United States while there are variations of approach to the emerging worldwide perceptions.

In this conversation, deputy director of the Center for African Studies at Moscow’s National Research University High School of Economics (HSE), Vsevolod Sviridov, expresses his opinions focusing on BRICS agenda under India’s presidency, South Africa’s G20 chairmanship in 2024, and genegrally putting Africa’s development priorities within the context of emerging trends. Here are the interview excerpts:

What is the likely impact of Washington’s geopolitics and its foreign policy on BRICS?

From my perspective, the current Venezuela-U.S. confrontation, especially Washington’s tightened leverage over Venezuelan oil revenue flows and the knock-on effects for Chinese interests, will be read inside BRICS as a reminder that sovereign resources can still be constrained by financial chokepoints and sanctions politics.  This does not automatically translate into BRICS taking Venezuela’s side, but it does strengthen the bloc’s long-running argument for more resilient South-South trade settlement, diversified energy chains, and financing instruments that reduce exposure to coercive measures, because many African and other developing economies face similar vulnerabilities around commodities, shipping, insurance, and correspondent banking. At the same time, BRICS’ expansion makes consensus harder: several members maintain significant ties with the U.S., so the most likely impact is a technocratic push rather than a loud political campaign.

And highlighting, specifically, the position of BRICS members (South Africa, Ethiopia and Egypt, as well as its partnering African States (Nigeria and Uganda)?

Venezuela crisis urges African members to demand that BRICS deliver usable financial and trade tools. For South Africa, Ethiopia, and Egypt, the Venezuela case is more about the precedent: how quickly external pressure can reshape a country’s fiscal room, debt dynamics, and even investor perceptions when energy revenues and sanctions compliance collide. South Africa will likely argue that BRICS should prioritize investment, industrialization, and trade facilitation. Ethiopia and Egypt, both debt-sensitive and searching for FDI, will be especially attentive to anything that helps de-risk financing, while avoiding steps that could trigger secondary-sanctions anxieties or scare off diversified investors.

Would the latest geopolitical developments ultimately shape the agenda for BRICS 2026 under India’s presidency?

India’s 2026 chairmanship is already framed around “Resilience, Innovation, Cooperation and Sustainability,” and Venezuela’s shock (paired with broader sanction/market-volatility lessons) will likely sharpen the resilience part. From an African perspective, that is an opportunity: South Africa, Ethiopia, and Egypt can press India to translate the theme into deliverables that matter on the ground: food and fertilizer stability, affordable energy access, infrastructure funding. India, in turn, has incentives to keep BRICS focused on economic problem-solving rather than becoming hostage to any single flashpoint. So the Venezuela episode may function as a cautionary case study that accelerates practical cooperation where African members have the most to gain. And I would add: the BRICS agenda will become increasingly Africa-centered simply because Africa’s weight globally is rising, and recent summit discussions have repeatedly highlighted African participation as a core Global South vector.  South Africa’s G20 chairmanship last year explicitly framed around putting Africa’s development priorities high on the agenda, further proves this point.

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