Mwinyi inaugurates ZIC Islamic insurance
Zanzibar. Zanzibar President Hussein Mwinyi on Wednesday officiated the launch of Islamic insurance offered by the Zanzibar Insurance Corporation (ZIC) through its subsidiary known as ZIC Takaful.
Dubbed Takaful, the service is based on Sharia-compliant principles as required by Islam.
Dr Mwinyi emphasised the government's commitment to ensuring that insurance services reach all citizens while respecting their principles, beliefs, and preferences.
The Takaful service adheres to the principles and values of the Islamic religion, including the exclusion of interest and gambling, while opposing investments in businesses that contradict the principles.
"For a long time, Takaful services have been used in various countries in Africa, Europe, and Asia to provide opportunities for businesses that follow Islamic principles. The introduction of this service in our country will also help attract various investors who believe in Islamic faith, which is crucial for ZIC development and the nation as a whole," he said.
He noted that the service is expected to be a vital link in the growth of Islamic finance services, as it provides an opportunity for banks that already operate on the principles to offer insurance services, which was not possible before the establishment of Takaful.
Dr Mwinyi emphasised that the government's goal is to ensure that all citizens, have access to various economic services provided by different institutions.
Deputy Minister of State, President's Office, Finance and Planning Ali Suleiman Ameir stated that the introduction of Takaful product aligns with the government's efforts to strengthen the insurance sector and stimulate economic growth in the country, which benefits the government, citizens, and the nation as a whole.
"In terms of the government, Takaful services will help increase government revenue through taxes and fees generated from insurance activities. This will contribute to enhancing the government's capacity to provide essential services to citizens and implement development projects,," he said.
He mentioned that the government is determined to ensure the efficient operation of Takaful services and has already established robust control and auditing systems to ensure transparency, accountability, and integrity in insurance activities.
For his part, ZIC CEO Arafat Haji stated that the step is a continuation of the organization's core strategy, aiming to ensure that its services reach people from various backgrounds with the goal of improving access to insurance services for citizens and thus accelerating its own growth and that of the nation as a whole.
"We believe that Takaful services will enhance our reputation among all stakeholders, a belief that we think will further strengthen us commercially and guarantee our ability to protect the projects, businesses, and assets of our investors while also increasing employment opportunities for citizens," he said.
The Commissioner of Insurance, Dr Baghayo Saqware, stated that currently the insurance market in the country serves only 15 to 20 percent of the population.
He added that innovative approaches aimed at increasing the use of insurance services are crucial, as it is the government's goal to have an inclusive system for the provision of this economically important service.
"The insurance sector is essential for the individual, institutional, and overall economic growth, and that is why we commend the Zanzibar Insurance Corporation for being the first in the country to offer Takaful services," he said.
