Tanzania: NBC promises to finance businesses under Shariah

THE National Bank of Commerce (NBC) has promised to start financing businesses that would operate under Islamic law - Shariah.

The NBC Managing Director, Mr Lawrence Mafuru, said this when launching the NBC Corporate Islamic and Business Accounts in Dar es Salaam on Tuesday.

"NBC, since its inception in 1967, understands the presence of Shariah and people who like to abide with it. May be we were a hindrance to them but now we have to start afresh by launching Corporate Islamic Current Account," he said.


He said that the businesses would enjoy the service in both foreign and local currency.

"There will be no interest under the Sharia banking," he said.

However, Mr Mafuru said that the two products, apart from being operated under Shariah law, would be regulated by the Bank of Tanzania (BoT).

Former President Ali Hassan Mwinyi who was the chief guest at the occasion praised the bank's move, saying that Muslims in the country were forced to trade in the secular banking system for lack of such service.

"The NBC decision is worth emulating as it will enable Muslims to access banking services, while observing their religious faith which forbid accruing any interest," he said.

He challenged the bank to spread the service to other parts of the country.

The event is a series of new Islamic products by the bank after it had successfully launched such service in May, last year, for individuals.

The bank also used the event to host iftar to break fasting for the Muslims observing the holy month of Ramadan.