Standard Bank's new Shari'ah-compliant overdraft is another first
Designed to empower business owners with more Shari'ah-compliant solutions, the product adds to a long list of Standard Bank's innovative solutions to meet the unique needs of Africa's growing demand for Islamic finance.
Structured under the Shari'ah principle of Wakaalah, the Shari'ah overdraft facility is a non-interest-based alternative that provides businesses with instant access to short-term funding. Linked to the Shari'ah Business Current Account, the new product will allow clients to drawdown up to a preapproved limit.
This overdraft facility empowers entrepreneurs to manage cash flow fluctuations without compromising their values and need for Shari'ah compliance
Ameen Hassen, head of Shari'ah Banking at Standard Bank
'This is not just a product launch, it's a response to a critical gap in Africa's Islamic finance ecosystem,' said Ameen Hassen, head of Shari'ah Banking at Standard Bank.
'For too long, businesses that required Shari'ah-compliant financing options lacked fluidity of a working capital solution that an overdraft brings. This overdraft facility empowers entrepreneurs to manage cash flow fluctuations without compromising their values and need for Shari'ah compliance.'
With Sub-Saharan Africa home to 18% of the global Muslim population but accounting for just 1% of worldwide Islamic finance assets, Standard Bank's innovation arrives as the region seeks scalable, Shari'ah-compliant solutions. The overdraft facility will directly address working capital challenges faced by businesses.
Key benefits of the new product include:
Competitive market-related pricing.
Direct linkage to the Shari'ah Business Current Account for streamlined operations.
Certified compliance: the facility is certified by Standard Bank's Shari'ah Advisory Committee.
Not only for Muslims
While Shari'ah Banking adheres to Islamic principles like Wakaalah bi al-Istithmar (agency-based investment), and the prohibition of interest (riba), Hassen said the bank's offering transcended religious boundaries, with about 35% of Standard Bank's South African Shari'ah clients identifying as non-Muslim. 'This isn't just for Muslims, it's for anyone seeking transparent, non-interest, asset-based or backed financial solutions,' said Hassen.
The launch builds on Standard Bank's legacy of Islamic finance innovation, including the world's first Shari'ah-compliant Diners Club product and SA's inaugural Shari'ah tax-efficient endowment.
'Africa's economic future hinges on inclusive, innovative finance,' said Hassen. 'With this product, we're not just serving clients, we're innovating, industrialising and advancing a system of finance rooted in tradition and shared prosperity.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mail & Guardian
20 hours ago
- Mail & Guardian
Protected: Standard Bank sweeps the board at 2025 Euromoney awards
Last week, Standard Bank Group CE, Sim Tshabalala, had the honour of accepting 26 accolades on behalf of the bank at the prestigious Euromoney Awards for Excellence 2025, including Best Bank in South Africa and Africa. This content is password protected. To view it please enter your password below.
The South African
2 days ago
- The South African
Lasizwe 'haunted' by R2m student donation scandal
Lasizwe has revisited the pain of the R2 million student fee crowdfunding initiative he was accused of pocketing several years ago. In 2021, the influencer started the #R10GoesALongWay initiative to help students around South Africa pay their registration and tuition fees. On his X platform, Lasizwe once again addressed accusations he pocketed R2 million he had raised to aid South African students. He posted: 'Four years ago, I was dragged through the mud over claims that I stole R2 million yama students, which was false and it's lies. Till this day, that accusation still haunts me. He continued, ' I'm seeing people joking about it now, but you don't understand the damage it caused. I've spent four years trying to clear my name from something I didn't do.' In 2022, Lasiwe attempted to clear the confusion on the money he had raised. He told TshisaLive: 'This has been popping up, I've been ignoring it. It was long overdue for me to respond and say what happened because people were terrorising me on social media and saying I ate the 2 million. I didn't even see a cent of that 2 million. 'Everything was transferred to the Fundi organisation and they handled the proceedings'. In March 2021, Lasizwe, along with fellow stars Sibu Mabena, Takkies Dinwiddy, and King Aya, started the #R10GoesALongWay initiative to raise funds to assist students during the 'Fees Must Fall' protests around the country. In just a few days, Lasizwe and co. raised R1 million and were matched with another R1 million in a pledge made by Standard Bank. However, there was no word on the cash until August of that year when Lasizwe claimed that whilst over R2 million had been raised, they had only received half the money due to red tape delays. He told the media, 'Some companies that pledged to the initiative had to get tax clearances. And it's been a long process. Fundi [Bursary fund FundiFund] has its own protocols it needs to adhere to.' According to Fundi Fun's website, the money has been used to assist students. It said: 'Over three years, over 480 students were funded for their registration within the various accredited institutions to the value of R2.2million'. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.
Mail & Guardian
3 days ago
- Mail & Guardian
Inflation ticks up to 3% in June on the back of higher food prices
The main contributors to the year-on-year increase were food and non-alcoholic beverages Annual consumer On a month-on-month basis, consumer prices were up 0.3% in June compared with a 0.2% increase the previous month. The main contributors to the year-on-year increase were food and non-alcoholic beverages, which reached a 15-month high of 5.1%, adding 0.9 percentage points to the overall rate. Alcoholic beverages and tobacco followed, rising to 4.4% and contributing 0.2 percentage points. Housing and utilities inflation also accelerated to 4.4%, adding 1.0 percentage points to the headline number. The rate for goods was also higher at 2.3% from 1.8% in May, while the services component edged up to 3.7% from 3.6%. The only dampener for June inflation was the transport category, which contributed -0.5 percentage points to the overall rate. Economists said this was because petrol prices fell more slowly — by just 0.2% in June compared with 1.1% in May and 1% in April — as higher Brent crude oil prices offset the modest appreciation of the rand. The inflation rate is still within the 'Such low inflation provides considerable support for consumers given that most wage increases are higher than this low prevailing rate of inflation,' said Elna Moolman, head of macroeconomic research at Standard Bank. 'It also arguably supports the case for the Reserve Bank to cut interest rates further at the upcoming monetary policy meeting next week.' Nedbank economists expect annual inflation for 2025 to rise gradually off a low base, but to remain relatively contained as a result of 'a surprisingly resilient rand, much lower global oil prices, the gradual easing in domestic supply-side constraints, and limited demand pressure on prices'. 'Given a relatively favourable inflation outlook, the South African Reserve Bank reduced interest rates by a further The central bank's monetary policy committee — which meets once every two months to decide on interest rates — will have its next discussion next week.
