Sharia-law banking services for all, says Muslim Association of Malawi

The Muslim Association of Malawi (MAM) has hailed the tnterest-free participation banking new guidelines drafted by Reserve Bank of Malawi embarcing an Islamic banking system which charges no interest, unlike conventional banks, calling them long overdue, as over 30 percent of Malawi’s population of 17.5 million is Muslim.

Sheik Chabulika: Sharia law banking services is open to everyone regardless of their faith.

The guidelines are built around Sharia Islamic laws which govern the way Muslims live their lives and conduct their daily business, including financial affairs.

“Sharia law lays down [guidelines] for the management of money, one of these guidelines being the absence of interest on current and savings accounts,” said Sheikh Dinala Chabulika, the group’s spokesman.

He said although this service will mostly appeal to Muslim customers, it is open to everyone regardless of their faith.

Participation banking “will be an alternative to. conventional banking. Muslims and non-Muslims globally are choosing to make use of Islamic banking because it is good,” he said.

Mbane Ngwira, spokesperson for the cenytral bank said they  drafted the guidelines which were distributed to stakeholders for comments, “which is the initial step.”

“After consolidation of the comments and any other acceptable recommendations, the guidelines will be finalized and submitted to the government for vetting,” Ngwira sais.

Once approved by parliament, participation banking will be a new and innovative solution to modern money management in Malawi. Other countries in southern Africa such as Zambia, Zimbabwe, and South Africa have all embraced the system.

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Roy Phiri
Roy Phiri
4 years ago

We should be careful of what the Muslims say about our nation. Remember their so called prophet was a paedophile, war mongerer, rapist and a drug addict.
In France they are know as poor man’s religion.

4 years ago

Malawians don’t think this will be free for all,not at all.They have there own procedures on how they give out loans.You celebrate the interest free loan,yet you share the profits that you make from the money borrowed from them.To me sindikuona kusiyana kweni kweni ndi conventional banking,only that awa amachotsa word yoti “interest” and replace it with “sharing”. Government is not stupid,they know they benefit a lot from these commercial banks thru corporate tax,,if anybody don’t know what corporate tax is find out.

4 years ago

Bola asabweletse pamodzi ndi terrorism. We don’t want suicide bombers here. Be careful when entering that bank as it can explode

mufwa mkandawire
4 years ago

As one of the christian looped up in the huge interests on the commercial banks in this country. I warmly welcome this pro-poor bank. It will change the lives of many Malawians and stimulate development.

Lt. Fraser Chakhaza
4 years ago

This is a welcome development to the poor society (low and middle) income earners who will be able to borrow money without worrying much about interests. Most importantly, this will also assist people to stop completely, or reduce borrowing money through unconventional banking systems i.e. katapila which has made many lost their property. However, there should be proper guidelines and civic education as some unscrupulous people will infiltrate the participation banking and use the same money to lend others through unconventional systems like katapila when the same has been borrowed at interest free rate.

4 years ago

The fall of western capitalism which is the main cancer to the poor masses. Anzathu maiko ena akupindula with this kind of banking which is social to the poor. You know with capitalism the poor remain the poorer while the middle class remain going a step ahead against the lower class with a huge margin difference. To those who know capitalism and socialism will celebrate with the coming of sharia system of banking. Lets put much support that these should work… I remember government had to put and mobilising uncircumcised men to go and get circumcised but alas some and… Read more »

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