Takaful Gains Ground in Ethiopia's Insurance Market


[ssba-buttons]

A two-day international forum in Addis Abeba brought together experts from around the world to discuss the prospects and perils facing the growing interest-free banking industry in Africa. Discussions focused on the regulatory landscape of Islamic finance in Africa, investment opportunities in interest-free banking, the role of Takaful (Islamic insurance) in financial inclusion, and the impact of Islamic fintech innovations on the African market. Hassan Mohammed, state minister of Industry, highlighted the risk-sharing nature of interest-free financial instruments, which can help mitigate systemic risks and reduce the likelihood of financial crises. Organised by the AlHuda Centre of Islamic Banking & Economics, the 5th International Interest-Free Banking & Takaful Forum aimed to stimulate dialogue and promote the development of interest-free finance on the continent. Muhammad Zubair, CEO of AlHuda, expressed optimism about Africa's potential to become a major hub for interest-free finance, and Ethiopia's prospect for leading the transformation. Ethiopia's Takaful insurance market had a share of 127 million Br (nearly 4.5 million dollars) two years ago, representing less than one percent of the total gross written premiums of the industry. While a few Ethiopian insurance companies offer Takaful services, the market is still relatively underdeveloped, with a focus on Wakalah-based products and limited offerings for family Takaful.


Radar

Construction Sector Faces 'Serious Trouble,' Minister Warns

The construction industry in Ethiopia is in "serious trouble," said Chaltu Sani, Minister of Urban & Infrastructure Development, citing major challenges with finance, competitiveness and material costs. Speaking at the opening of the BIG 5 Construct Ethiopia expo and the inaugural East African Infrastructure & Water Expo at Millennium Hall last week, Chaltu stressed the need for concerted efforts from government, private sector, and international partners to support the 67 billion dol...


Radar

Wegagen Bank, Gift Real Estate Partner to Promote Diaspora Homeownership

Wegagen Bank S.C. and Gift Real Estate Plc. signed a Memorandum of Understanding (MoU) on June 23, to offer housing loans for homebuyers, with a special focus on the Ethiopian diaspora. The agreement enables eligible diaspora members to access loans covering up to 80pc of a home's value at reasonable interest rates. The bank's Deputy CEO Kidane Gebreselassie noted the deal will promote the real estate sector and expand homeownership options. Founder and CEO of Gift Real Estate, Gebreyesus Igata...


Radar

Jimma University Signs Sports Science Agreement to Strengthen National Programmes

Jimma University has signed a four-party Memorandum of Understanding (MoU) with the Ethiopian Academy of Sciences, Derartu Tulu Sports Training & Research Institute, and the Oromia Youth & Sport Bureau to advance Ethiopia's sports science and training capacity. Signed on June 26, the agreement includes joint research, shared facilities, and hosting of national and international competitions. It is expected to strengthen youth development, public health, and national pride through coor...