Tanzania: Govt Commits to Boosting Insurance Contribution to Economy

DAR ES SALAAM: THE government has said it is committed to boosting insurance penetration and contribution to the Gross Domestic Product and closing the global average by 2030.

The government plans to reach an insurance GDP contribution of 3 per cent for African coverage by the year 2023/24 and 5 per cent by the year 2030 close to the global average.

Zanzibar’s Minister of State in the President’s Office, Finance, and Economy Dr Saada Mkuya made the statement in Dar es Salaam on Thursday at the launch of the First United Takaful Company which is supporting the government’s move to reach the target.

“The introduction of Islamic-based insurance services will increase financial inclusion and promote the financial sector development master plan of 2020/2030,” she said.

She said the launching of the new Takaful Company aligns with the two governments’ visions of promoting the economy of both countries through the insurance sector.

“The introduction of this insurance service which is based on the Islamic requirement is a positive move in adhering with the two government’s views of boosting the insurance industry, “said Dr Mkuya.

The Takaful Insurance services are based on Islamic religious principles including the exclusion of interest ‘riba’ and gambling while also opposing investment in businesses that go against the Islamic faith principles.

She added that the two governments are optimistic about creating a conducive environment for the Takaful investment, enhancing innovation in determining the progress and sustainability of the insurance sector.

Additionally, TIRA’s Deputy Commissioner of Insurance Khadija Issa Saidi commended the company’s motive that resulted in the granting of the operation license for the Takaful-based insurance service, promising full support from the government.

The First United’s Chief Executive Officer (CEO) Mr Abdulnasir Ahmed Abdulrahman said insurance plays a vital role in human lives and that introducing religious-based insurance services is highly going to boost living conditions.

“There have been challenges to the available insurance services that meet the spiritual requirements…thus, it is an important thing to introduce Takaful insurance that abides with the sharia law which insists on principles of cooperation, and sharing,” said Mr Abdulrahman.

Furthermore, Dr Kassim Hussein, First United’s Chairperson underscored the transformative nature of the insurance industry and that the company is obligated to enhance creativity to meet customer needs.

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