The Tanzania Insurance Regulatory Authority (TIRA) has reiterated its intention to introduce regulations for takaful.
TIRA Insurance Commissioner, Dr Baghayo Saqware, told Daily News recently that the regulations are aimed at extending the scope of insurance services and increasing the contribution of the sector to the economy.
“Extending the availability of insurance services is another area of our focus this year; we will do it by introducing new insurance products,” said Dr Saqware.
Industry players welcomed the government’s plans for takaful, saying that the plans would boost economic growth and support the government-backed industrialisation agenda.
Finance and economic expert Mohsin Hussein said: “The expansion of insurance services will consequently expand the country’s financial services in various spheres.” Takaful investment funds will also facilitate the establishment of industries, create more jobs and increase government revenues, he said.
Another expert, Omar Sharif, said the introduction of takaful will increase banks’ ability to issue loans because credit risk would be mitigated.
Tanzania’s attempts to introduce a regulatory framework for Islamic insurance have been protracted. Research conducted by TIRA in 2011 had shown that there is unfulfilled demand for takaful products in the country and there are potential investors interested in setting up Islamic insurance business.
A draft regulation was proposed to important stakeholders in 2013.
In September 2015, the then Insurance Commissioner, Mr Israel Kamuzora, said the regulatory framework for takaful was being finalised and was to be ready by the end of that year.
The World Economic Forum has listed Tanzania top in inclusive economy among African countries in 2018. In December, the IMF called on the Tanzanian government to speed up reforms and spend more to prevent a slowdown in one of the world’s fastest growing economies. The Tanzanian economy has been growing at around 7% annually for the past decade, but the World Bank said in November that growth will likely slow to about 6.6% in 2017. President John Magufuli pledged to reform the economy, and begin a programme to develop public infrastructure after he was elected in 2015. M