---
title: "Standard Bank Launches Southern Africa’s First Shari’ah-Compliant Overdraft"
description: "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."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Sponsored Content"
author: "Standard Bank"
author_url: "https://www.dailymaverick.co.za/author/standard-bank/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-06-27-standard-bank-launches-southern-africas-first-shariah-compliant-overdraft/"
published: "2025-06-27T16:25:33"
updated: "2025-07-03T12:18:12"
lang: "en-ZA"
word_count: 333
---

# 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.

By Standard Bank · Published 27 June 2025, 18:25 SAST · Updated 3 July 2025, 14:18 SAST

## Key points
- In a groundbreaking move that marries tradition with modern finance, Standard Bank has launched a Shari’ah-compliant overdraft facility, proving that even in the world of Islamic finance, cash flow and ethical values can dance together without stepping on each other's toes.
- Standard Bank launches a Shari’ah-compliant Overdraft facility, offering non-interest based short-term funding to businesses.
- The product addresses a significant gap in Africa’s Islamic Finance ecosystem, providing fluid working capital solutions for entrepreneurs.
- Approximately 35% of clients using the Shari’ah Banking services are non-Muslim, highlighting the inclusive nature of the offering.
- This initiative aims to foster economic growth in Africa through innovative and accessible financial solutions rooted in Shari’ah principles.

## Content

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](https://www.standardbank.co.za/southafrica/personal/products-and-services/bank-with-us/shari%CC%81ah-banking). “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 shariah@standardbank.co.za. **DM**

![Image](https://www.dailymaverick.co.za/wp-content/uploads/2025/06/SB_Primary_Full_Colour_Logo_Horizontal_RGB-2.png)