REPUBLIC OF GHANA

DIVESTITURE OF STATE-OWNED ENTERPRISES

STATE INSURANCE COMPANY OF GHANA LIMITED

REQUEST FOR EXPRESSIONS OF INTEREST FROM STRATEGIC INVESTORS

The Divestiture Implementation Committee (DIC), acting on behalf of the Government of Ghana, has appointed Sterling International Group, Inc. as consultants (the "Consultants") to advise in connection with, and ultimately to implement, the divestiture of the State Insurance Company of Ghana Limited (SIC).

ENTERPRISE PROFILE

SIC was set up in 1962 and converted into a limited liability public company in August 1995, pursuant to the Statutory Corporations Act of 1993.

The company’s principal object is to act as insurers and re-insurers for general types of risk. Currently, SIC underwrites the following classes of insurance business: (a) life insurance; (b) non-life insurance (including motor insurance, marine and aviation insurance and fire insurance); (c) bonds and guarantees for constructional works and other commercial purposes; and (d) re-insurance.

The company’s premium income for 1996 was approximately 40 billion cedis*, representing 60.9% overall market share. SIC’s market dominance is backed by an extensive marketing and distribution network of 14 area branch offices, 16 contact offices and 200 agents. In the period 1993-1996, the company’s premium income grew at an annual compound rate of 42.6%. The SIC privatization represents an attractive investment opportunity in view of the company’s premier market positioning, the upside that will come from future improvement of operational and distribution efficiencies and the continued growth of the industry.

The divestiture of SIC involves (a) the sale of approximately 40% or more of the shares to a Strategic Investor (SI); (b) a further sale of shares to the public; and (c) the listing of the company on the Ghana Stock Exchange (GSE).

LETTERS OF INTEREST

Interested potential strategic investors are hereby invited to submit letters of interest to the Consultants by close of business on Friday May 15th, 1998. Letters should contain:

1. Description of the investor’s activities;
2. Details of ownership structure;
3. Experience in managing insurance companies in emerging markets;
4. Current information on the investor’s financial standing, including disclosure of net worth; and
5. Description of the investor’s network of affiliates.

All inquiries and letters of interest should be addressed to:

*USD 1=1,600 cedis (1996)

The DIC and Sterling International Group, Inc. reserve the right to extend the deadline for the submission of letters of interest, reject any letter of interest without stating the reasons for doing so, or cancel this invitation.