Online Reporter
Ivan Zhakata
Herald Correspondent
ZIMBABWE’S financial sector is stepping up efforts to explore Islamic banking as part of broader initiatives to diversify financial services, promote financial inclusion and unlock new investment opportunities.
This follows the inaugural Islamic Banking Indaba held in Harare on Thursday, which brought together banking executives, policymakers and financial experts to deliberate on the potential of Sharia-compliant finance in Zimbabwe.
The indaba, held at the Hyatt Regency Hotel last week, was organised by the Bankers Association of Zimbabwe (BAZ) in collaboration with the Zimbabwe National Zakat Fund (ZIMNZAF) and the Embassy of Malaysia.
Speaking at the event, BAZ chief executive Mr Fanwell Mutogo said the engagement stemmed from discussions between the association and the Embassy of Malaysia, which identified opportunities for Zimbabwe to learn from countries with established Islamic finance systems.
“When the Embassy of Malaysia initially approached us for this collaboration, we immediately recognised the potential value of exploring diverse financial frameworks,” said Mr Mutogo.
He said BAZ moved swiftly to involve its member banks, many of which have already shown interest in understanding Islamic banking as they seek to diversify their product offerings.
“As an association, we are fully aware that some of our member banks are already aware of, or are actively considering, these initiatives as they look to broaden their financial portfolios and explore new banking models,” he said.
Mr Mutogo said the objective of the indaba was to provide a platform for banks, regulators and other stakeholders to gain a deeper understanding of Islamic banking and objectively deliberate on the opportunities presented by the model.
“Today’s programme has been designed to provide a platform for us to listen, learn and objectively deliberate on these concepts as presented by experts in the field. We are privileged to have presentations from the Islamic Banking and Finance Institute Malaysia, who will unpack the products, services and commonly practised contracts under Islamic finance,” he said.
He said the strong participation by local banks and policymakers reflected growing interest in expanding Zimbabwe’s financial ecosystem through innovative financial solutions.
Mr Mutogo said banking was not merely about financial transactions but about improving people’s lives and supporting sustainable economic development.
“Banking goes far beyond numbers, transactions and balance sheets. It is fundamentally about people. Let today’s engagement be the seed from which a more diverse and prosperous shared future grows,” he said.
Islamic banking is founded on principles of ethical investment, risk-sharing and asset-backed financing, while prohibiting interest-based lending.
The inaugural indaba comes as Zimbabwe’s financial sector continues to pursue innovation, inclusion and diversification in line with the country’s broader economic development goals.
