The African Risk Capacity launches a Sharia-compliant reinsurance facility to protect communities against climate risks in Africa.

By Sadiq Abdulfatah

The African Risk Capacity (ARC) Group has unveiled the WAQF ReTakaful Facility, the first Sharia-compliant reinsurance initiative aimed at strengthening climate resilience and promoting financial inclusion across ARC member states. The initiative was facilitated by AlHuda CIBE.

The facility was officially launched at the 7th Global Takaful and ReTakaful Forum in Dubai, UAE, held from October 21–24, 2025. Key figures including Mr. Yusuf Bodiat, Dr. Hassan Bashir, and Dr. Timothy Nielander announced the new platform.

The WAQF ReTakaful Facility provides affordable, Sharia-compliant reinsurance for Takaful operators and insurers, particularly in underserved markets. Operating as a non-profit mutual platform, it pools risks from participating countries to offer sustainable coverage focused on agricultural and climate-related threats. The goal is to help communities most affected by natural disasters and extreme weather events.

Muhammad Zubair, CEO of AlHuda CIBE, said: “This facility is a major step toward closing Africa’s protection gap through socially responsible and Sharia-compliant solutions. It supports financial inclusion, resilience, and sustainability.”

Developed with AlHuda CIBE’s backing, the facility aims to expand Islamic risk-sharing solutions across the continent. ARC and AlHuda CIBE also plan capacity-building programs for African Takaful operators and policymakers, with further expansion subject to regulatory approvals.

ARC (Africa Risk Capacity) is a specialized agency of the African Union that provides weather and climate risk insurance to African governments. Its main goal is to help countries prepare for, manage, and respond to natural disasters like droughts and floods, reducing the impact on food security and vulnerable populations.

Source: Reinsurance News