ICMIF member African Risk Capacity Limited (ARC Ltd.) has launched a new initiative designed to bring Shariah-compliant climate protection to millions of vulnerable people across Africa.

Announced during the 7th Global Takaful and Re-Takaful Forum 2025 in Dubai, the new ARC Re-Takaful WAQF Facility (ARC ReTak) will enable communities and insurers in African Union Member States to access financial protection that aligns with Islamic principles. The initiative also earned ARC Ltd. the “Resilient Re-Takaful Finance Innovator Award”, recognising its pioneering role in advancing inclusive climate financing.

Expanding protection to underserved communities

Across Africa, more than 700 million people are exposed to climate-related disasters such as droughts and floods, with an estimated 300 million belonging to the Islamic community, many of whom are without access to faith-compliant insurance products. ARC ReTak aims to close this protection gap by offering Shariah-compliant, community-based solutions that will help households and governments recover more quickly after climate shocks.

Built on a Waqf (charitable trust) model, the facility allows governments, Takaful operators, and communities to share climate risks within faith-based frameworks while benefiting from rapid payouts in times of crisis.

Strengthening resilience through collaboration

Beyond expanding coverage, ARC ReTak will also strengthen existing protection systems by empowering local insurers to extend support to smallholder farmers, pastoralists, and other vulnerable groups. Surpluses generated through the facility will be reinvested into resilience-building programmes and grants, ensuring that affected communities can rebuild stronger after disasters.

ARC Ltd. says this initiative fosters collaboration between African and global Islamic finance institutions, creating a bridge between traditional insurance models and faith-based financial systems. Reflecting ARC Ltd.’s ongoing commitment to inclusion, innovation, and community resilience.

A faith-based approach to mutual protection

In developing its Shariah-compliant solutions, ARC Ltd. says it is aligning with the Islamic principles of solidarity and mutual assistance that underpin Takaful and Re-Takaful systems. Unlike conventional insurance, which is driven by profit-based underwriting, these models focus on fairness, transparency, and shared responsibility, values that resonate with ARC Ltd.’s developmental mandate as part of the African Union’s African Risk Capacity Group.

Driving progress toward a more resilient Africa

“The new facility expands the protection net to include millions who have so far remained outside conventional systems, not by choice but by lack of access,” said David Maslo, Chief Executive Officer of ARC Ltd. “This initiative embodies solidarity and innovation, ensuring that every African, regardless of faith or background, can recover and rebuild after climate disasters.”

Currently in its structuring and capitalisation phase, the ARC ReTak Facility strengthens ARC Ltd.’s mission to help African countries anticipate, plan for, and respond to natural disasters. It also contributes to the achievement of Sustainable Development Goals 1 and 13 and aligns with the African Union’s Agenda 2063 for a more resilient continent.

Photo shows, left to right: 

• Jetho Jhamnani – Managing Director, GIC Re South Africa
• Yusuf Bodiat – Head of Finance and Investments, ARC Ltd.
• Marya Nielander – Vice-President, GP3 Institute
• Dr Hassan Bashir – Senior Consultant and Strategic Advisor, ARC Ltd.
• Tim Nielander – Senior Legal Advisor, ARC Ltd.