The Southern African Development Community (SADC) has taken a major step toward harmonising third-party vehicle insurance across its member countries. This move aims to make cross-border travel easier and strengthen regional integration.
The decision came out of the recent SADC Finance Ministers’ meeting held in Victoria Falls on Thursday. The ministers agreed to adopt either the Comesa Yellow Card insurance system or a mutual recognition of national insurance policies.
Professor Mthuli Ncube, Zimbabwe’s Minister of Finance, Economic Development and Investment Promotion and chair of the SADC Finance Ministers, explained the importance of this plan. In an interview with Zimpapers, he said it will promote trade and movement across the region.
Professor Ncube noted the difficulties caused by different insurance rules in each country. “We discussed many issues, but one key point was the need to harmonise rules for third-party insurance,” he said. “The Comesa Yellow Card system already allows people to travel with their vehicles without extra insurance problems.”
Currently, seven SADC countries are members of Comesa and use the Yellow Card scheme. Two or three others are testing it. This shows progress toward a common solution.
At present, drivers face long delays and extra costs at border crossings because each country has its own insurance requirements. Sometimes, they must buy separate insurance for every country they enter.
The Comesa Yellow Card acts as a single insurance certificate recognized across participating countries. This reduces delays and costs for travellers.
Professor Ncube said SADC plans to adopt this model or consider mutual recognition of each member’s insurance policies. “Ideally, we want a single system, but if that is difficult, mutual recognition will work,” he said. “This is important for the free movement of people and goods.”
For Zimbabwe, which borders several SADC countries, this change would be very helpful. Zimbabwe is a key transit hub linking major trade routes to South Africa, Zambia, Botswana, and Mozambique.
A unified insurance system will lower costs for trucks, buses, and private vehicles. This can increase trade and tourism in the region.
Zimbabwean insurers have raised concerns before about the slow process of handling claims involving foreign vehicles. A harmonised system would make it easier to settle claims fairly and quickly for accident victims, no matter their nationality.
This insurance plan fits into SADC’s wider goals to deepen regional integration. The bloc is working to remove trade barriers, create a free trade zone, and improve cross-border infrastructure.
Although challenges remain—such as differing laws and enforcement issues—the strong political support from finance ministers shows commitment to cooperation.
The SADC Secretariat will now work with insurance regulators, the private sector, and Comesa to finalize the plan and prepare for implementation.
