By our staff reporter
The nation’s capital successfully hosts the 5th Edition of Global Takaful and Re-takaful forum in partnership with AlHuda CIBE, and Ethiopian Reinsurance; Muhammad Zubair.
This forum was reflective of the growth of Ethiopia’s interest-free financial industry where 5 takaful windows are operating with 18 banks offering interest-free banking products.
As cited in the forum, the country aims to increase cooperation and increase Takaful, Re-takaful and interest-free banking activities.
At the forum, Solomon Desta, Deputy Governor, Supervision of Financial Institutions, National Bank of Ethiopia, expressed his desire to invite foreign direct institutional investment to Ethiopia.
There are more than 400 Takaful companies and more than 35 Re-takaful companies operating worldwide. Global Insurance reflects the growth of Ethiopia’s interest-free financial industry, with 5 takaful windows operating in Ethiopia with18 plus banks offering a line of interest-free banking products.
By definition, takaful insurance is a cooperative insurance where interested parties agree to share risks. The word ‘Takaful’ is an Arabic word derived from the root word ‘Takaful’ which means mutual guarantee, sharing or partnership.
Mohammed Zubair Mughal, CEO of Alhuda Islamic Banking and Economics of the United Arab Emirates, at the event also applauded the support of Ethiopia’s financial industry. He pointed out the role of Ethiopian industry in the financial market of East Africa and the progress achieved by the local industry in last ten years, citing,
“Alhuda CIBE has been committed to the African market through consultancy services and capacity building programs for 15 years.”
The agenda of the forum which was held on the 24th and 25th of November 2023 was based on current takaful industry, takaful portfolio, product line, product innovation, marketing strategies, risk management, operational services, Shariah legality, future prospects of the industry, re-takaful and interest free banking. A post-event workshop on Operational Issues of Takaful, re-takaful and Interest-Free Banking was also held.
