ADDIS ABABA- The 2nd International African Interest-Free Banking and Takaful Forum was held yesterday.
Muhammad Zubair Mughal, Chief Executive Officer of AlHuda Centre of Islamic Banking and Economics (CIBE) mentioned that interest-free banking and finance is the ultimate financial solution due to its viability and sustainability.
Noting that the system has multifaceted benefits which concentrate on the balanced wealth distribution, he indicated that Ethiopian Interest-Free Banking and Takaful, a type of insurance system devised to comply with the Sharia laws and money is pooled and invested, market is very imminent and seems promising.
“East Africa is emerging a new destination for Interest-Free Financial Institutions which will open new avenue for the Foreign Direct Investment (FDI) in the region.”
Five new interest-free banks are ready to start their operations in the market including Zam Zam Bank, Hijre Bank, Zad Bank, Shabelle Bank, and Nijashi Bank, as to him.
In addition, more than 10 interest-free window operations are also going to start their operations to strengthen the growth of the market and uplift the living standards of the public.
Likewise, few banks with stand-alone branches as well as Insurance industries are also participating in the interest free banking.
Ali Asghar Golo, Ambassador of Pakistan to Ethiopia, mentioned that AlHuda CIBE is playing its role for the promotion of globally accepted alternative financial solution which is the only hope of financial stability.
He further explained that there is absence of specific legal and regulatory framework to govern the Interest-Free finance industry which should be addressed timely adding that It will not only promote the interest-free banking and financial services but it will also enhance the economic growth of the region.
While congratulating AlHuda CIBE for its role to introduce and promote Interest-Free banking and finance in East Africa, Monirul Islam, Bangladeshi Ambassador to Ethiopia also said that Interest-Free banking and finance is growing globally and Africa is also a good destination of it.
African Interest-Free Banking and Takaful Forum was sponsored by Cooperative Bank of Oromia, Path Solutions, Millennium Information Solution, and Global Insurance Co.le for the promotion of globally accepted alternative financial solution which is the only hope of financial stability.
The Ethiopian Herald February 19/2020
BY BETELHEM BEDLU
