The African Risk Capacity (ARC) Group has established the WAQF ReTakaful Facility, a first-of-its-kind Sharia-compliant reinsurance initiative aimed at advancing climate resilience and inclusive finance in ARC member states, facilitated by AlHuda CIBE.
The ARC WAQF ReTakaful Facility is designed to provide concessional ReTakaful (Islamic reinsurance) capacity to Takaful operators and insurers in ARC member countries. It seeks to bridge the reinsurance gap for underserved and vulnerable markets while promoting financial inclusion and climate resilience through cooperative, Sharia-compliant mechanisms.
Operating as a mutual, non-profit platform, the facility will pool risks across participating countries to provide affordable, sustainable, and ethical reinsurance coverage. By focusing on agricultural and climate-related risks, it aims to strengthen the resilience of communities most affected by natural disasters and extreme weather events.
Muhammad Zubair, CEO of AlHuda CIBE, commented, “The ARC WAQF ReTakaful Facility is a major step toward bridging the protection gap in Africa through Sharia-compliant and socially responsible frameworks. By supporting ARC in this initiative, AlHuda CIBE continues its mission to promote financial inclusion, resilience, and sustainability through Islamic cooperative principles.”
Developed with AlHuda CIBE’s support, the facility is expected to expand the reach of Islamic risk-sharing solutions in Africa while complementing ARC’s broader strategy of building resilience among its member states.
Both organisations plan to scale the facility, subject to regulatory approvals, and collaborate on capacity-building programs for African Takaful operators and policymakers.
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