Standard Bank launches Southern Africa's first Shari'ah-compliant overdraft
Africa's biggest lender, Standard Bank, has launched the first-ever Shari'ah-compliant overdraft facility in Southern Africa, marking a transformative milestone for Islamic Finance on the continent. 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 pre-approved limit.
'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 transcends religious boundaries, with approximately 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 South Africa'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.' To leverage this Shari'ah-compliant liquidity facility, businesses and individuals can contact their Standard Bank Relationship Manager or email
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Mail & Guardian
5 hours ago
- Mail & Guardian
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Many of those are now considered Given the number of abandoned mines, South Africa would have been featured more prominently in GEM's report, 'but there's been a On top of that, South Africa has 153 surface coal mines currently in operation — the seventh-most in the world. 'When those operations close, either because they've exhausted the life of the mine or for other retirement commitments, that opens the possibility for alternative uses,' Tate said. Given the problem of hundreds of derelict mines and the world-class solar potential in South Africa, this is a 'potential win-win', he argued. 'These projects spare local communities land-use conflicts, and put people to work preparing the old sites and installing the solar. With the right incentives, solar developers could create jobs, clean up the mess at derelict mines, and provide the next generation of power.' 'Buried sunshine' In 2024, the world installed a record-breaking 599GW of solar capacity while more than 2 000GW of utility-scale solar projects are being developed, according to GEM. But that requires widespread land use and developers often struggle to secure prime locations that aren't already in use or off limits. 'What looks ideal on a solar map can prove impractical on the ground. However, vast tracts of scarred landscapes already sit idle in much of the world waiting for a second act — abandoned coal mines.' The researchers found that the world's largest coal producers — Australia, Indonesia, the US and India — hold some of the greatest potential for solar redevelopment on mine lands. Still, 28 countries, including South Africa, with recently abandoned surface coal mines, are suitable for repurposing, representing potential solar capacity of 288GW. Idled, degraded Drawing on data in the The analysis further identified 3 731km2²of mine land that may be abandoned by operators before the end of 2030 because coal reserves have been depleted and the reported life of the mine. If those operations close, they could site an additional 185GW of solar power capacity. In total, an estimated 446 coal mines and 5 820km2 of abandoned mine lands could be suitable for solar repurposing. With development, those projects could harbour nearly 300GW of PV solar potential, equivalent to 15% of the globally installed solar capacity. Some of these projects are already under way. According to the report, GEM's new data on coal-to-solar projects showed that China has 90 operational coal mine-to-solar conversions, with a capacity of 14GW, and 46 more projects, with 9GW, in planning. Coal-to-solar transition The GEM report noted that the coal-to-solar transition offers a 'rare chance' to repair the environmental hazards and eyesores of open pits. It could generate an estimated 259 700 permanent jobs at coal-to-solar transition sites in manufacturing, wholesale trade and distribution, and professional services. During construction, these projects would create 317 500 temporary construction jobs, which together is more than the number of workers that the coal industry is Although the number of permanent jobs is not nearly enough to offset mining job losses, particularly in China and India, they can 'provide a lifeline to communities sorely in need of a just transition', according to the report It noted that constructing solar on upheaved lands isn't only land reclamation but a chance to align land restoration, clean energy goals, and local job creation. Although recent closures are the likeliest candidates for new development, many other closed mines may still be in suitable condition. Since 2010, the world has closed more than 6 000 coal mines. 'The earlier closures happened, the harder it is for developers to trace ownership tenures and infrastructural changes that could impede future repurposing, though it is still possible to scrutinise project viability on a site-by-site basis,' the report said. Since 2020, the coal industry's decline has closed more than 700 underground and surface operations. 'With phaseouts in motion, government climate goals, and economic unviability, coal mine closures will keep mounting in the years ahead,' the report noted. Presently, 3 800 coal mines produce 95% of the world's coal. With national commitments to phase out coal in 33 countries, the industry will leave behind hundreds of abandoned mines — and eventually thousands 'once mega producers China and India chip away at the industry'. Although no agency publishes figures on the number of square kilometres 'eaten by coal mining', a team of academics at Vienna University used satellite imagery and machine learning to report that the world has more than 101 583km2 of These sites include long-abandoned operations and sites ill-suited for repurposing. 'But coal contributed over half of all mineral fuels extracted in 2023, producing over eight billion tonnes. 'The open pit mines alone are only part of the problem: the coal mine industry also disturbs the vicinity around mines for processing, transportation, sludge storage, and power,' the report said. Cleaning the mess Reclamation and cleaning up the mess after mining is not a standard routine in much of the world. 'Without a profit motive to remediate, and weak government enforcement, many companies simply walk away — leaving behind unstable land and unmet obligations. As such, old mining sites have become prone to hazards and accidents,' the report said. 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'These mines are so close to the grid that renewable developers have even investigated the locations for large-scale battery storage. Some sites have also been explored for green hydrogen production. The proximity to the grid can make these coal-to-solar projects more cost-competitive,' the report said. It noted that when coal mines are repurposed for solar, the results can range from small community arrays to large utility-scale projects. The size of the buildout influences the cost, complexity and political landscape. Smaller projects of one to five megawatts (MW) 'can be quick wins', plugging into local distribution lines to power neighbourhoods, often with strong local support. 'They carry higher costs per megawatt and usually need creative financing such as bundling multiple sites into a single portfolio. But small projects have a considerably better chance of progressing in areas where big projects will never break ground. The mid-sized solar projects (five to 50MW) mix ambition with feasibility — big enough to attract corporate buyers and competitive investment but still small enough to tap into existing grid infrastructure without major upgrades. 'Mega projects over 100MW often require transmission buildout, vast land preparation, and serious patience. But for coal communities looking to make an energy transition once and for all, these large utility-scale projects can radically transform communities into clean energy hubs,' the report said. 'Avoid more Komatis' Bringing a coal mine back from ruin is no easy task. 'As with many derelict landscapes, clearing debris, scrap materials or remnants of past industrial activity is required before work can safely begin. 'With deep surface mines, slopes are often unstable and prone to erosion and collapse. Pits can fill with toxic runoff and coal ash, and other industrial wastes can leach into nearby waterways.' Sinkholes The researchers said abandoned mines have led to dangerous conditions, including Reclamation helps make the land safer for solar industry workers and surrounding communities. These restoration processes can stabilise unsettled ground, mitigate hazardous zones, and restore healthier soil layers. Adding solar infrastructure on top reinforces that process, keeping the land in productive use while reducing the risk of erosion and runoff pollution. 'Instead of abandoned scars on the landscape, these sites become managed, monitored spaces, cutting down on environmental hazards and offering a safer footprint for the communities around them,' the report said. These transitions are especially crucial as abandoned mines become more common with the rundown in the coal market and phaseout of coal. 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Standard Bank launches Southern Africa's first Shari'ah-compliant overdraft
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The Herald
10 hours ago
- The Herald
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And together, ladies and gentlemen, we will make Africa great again.' He praised the Nigerian government for the 'gutsy' move of fixing the Nigerian currency, the naira, as this would stabilise the economy and allow US investments to flow in. He urged Africa to 'remember who its true friends are', pointing out the US's work in providing humanitarian aid, peacekeeping missions and Ebola relief on the continent. Magubane was invited to the AGM as a guest of Afreximbank TimesLIVE
