Johannesburg-headquartered Risk Capacity (ARC) has unveiled its ARC Retakaful Waqf Facility (ARC ReTak), a non-profit, Shariah-compliant initiative expanding climate protection to underserved communities across Africa.
The announcement was made during the 7th Global Takaful and Retakaful Forum 2025, held in Dubai on 21 October.
The launch of ARC ReTak strengthens ARC’s role as a developmental insurer of the African Union’s African Risk Capacity Group, helping member states and communities anticipate, plan for, and respond to climate disasters. It builds on ARC’s existing sovereign and replica insurance mechanisms by adding a faith-based dimension, reinforcing progress toward Sustainable Development Goals (SDGs) 1 and 13 and the African Union’s Agenda 2063.
Millions of Africans vulnerable to droughts, floods, and other climate-related disasters will soon have access to the new solution, said ARC in a media statement. The Facility is currently in its structuring and capitalisation phase.
Expanding climate protection to underserved communities
More than 700m people remain unprotected from the devastating effects of climate shocks across Africa, and an estimated 300m belong to the Islamic community, many of whom lack access to insurance that complies with their faith. This new initiative aims to close that gap by offering Shariah-compliant, community-based protection, enabling vulnerable households and governments to recover more quickly after disasters.
ARC ReTak forms part of ARC’s broader mission to ensure that no one is left behind in building resilience against climate change. Through its Waqf (charitable trust) structure, it allows governments, takaful operators, and communities to share climate risks faith-based frameworks and access rapid payouts after droughts, floods, and other climate-related shocks.
Empowering local insurers and strengthening community resilience
Beyond extending coverage to new customer bases, ARC ReTak will also strengthen existing risk-protection systems on the continent. The Facility will empower local insurers by providing them with additional capacity to protect pastoralists, smallholder farmers, and other vulnerable populations. Surpluses generated by the Facility will be reinvested into grants and resilience programmes, helping households rebuild stronger after climate events.
By fostering collaboration between African and global Islamic finance institutions, ARC ReTak will serve as a bridge between traditional insurance systems and faith-based finance: a model that reflects ARC’s growing commitment to inclusion, innovation, and community resilience.
Tailoring new solutions to Islamic principles of mutual support
ARC is developing dedicated solutions that align with Islamic principles, offering protection mechanisms that resonate with the values of solidarity and shared responsibility.