Takaful Gains Ground in Ethiopia's Insurance Market


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.


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Regional Development Banks Tie-up for Private Sector Growth

Arab Bank for Economic Development in Africa (BADEA) and Trade Development Bank Group (TDB) signed a 100-million-dollar disbursement for a hybrid capital instrument last week on the sidelines of the African Union summit. Admassu Tadesse, president and managing director of TDB Group, and Sidi Ould Tah (PhD), president of BADEA were the signatories at the event attended by Central Bank Governor Mamo Mihretu, CEO of the Ethiopian Securities Exchange Tilahun Kassahun (PhD), and Deputy Chairperson of...


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National Bank Reports Five-Year Low Inflation, Record-High Exports

The National Bank of Ethiopia (NBE), in its six-month snapshot on monetary and external sector developments, reports that inflation has dropped to 15.5pc, the lowest in five years and a 13.9pc decline from last year's 29.4pc rate. Headline inflation stood at 34.5pc during the same period in 2022. The report also shows a sharp decline in food inflation, which fell by 16.6pc, from 32.3pc in January 2024 to 15.7pc in January 2025. Non-food inflation dropped by 10.2pc, from 25.3pc last year to 1...


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Horn Initiative Boosts Regional Development Agenda

A total of 20 projects worth three billion dollars are currently being implemented in Ethiopia under the Horn of Africa Initiative, which held a performance review platform last week. This initiative, established in 2019, seeks to economically integrate Horn of Africa countries through development projects. Finance Minister Ahmed Shide accentuated the initiative's goals of enhancing infrastructure connectivity, strengthening trade and economic integration, building resilience to natural and man...