Tanzanian Firm Signs $4.23Bn Islamic Financing Deals in Zambia

Mayzuh, a Tanzanian Islamic finance firm, has signed agreements with five Zambian entities to facilitate projects worth $4.23 Bn. The agreements include four contracts to raise funds for road infrastructure development, housing units, renewable energy, and agriculture projects. Islamic financing has gained significant popularity in recent years as an ethical and socially responsible alternative to conventional finance, particularly in Muslim-majority countries and regions. 

Related: List of Islamic Banks in Zambia

Mayzuh’s subsidiary, Mayzuh (Zambia) Company Limited, will facilitate alternative financing for the projects, including the Trans Africa Road Infrastructure Development (Tarid), Housing Units Project, Renewable Energy Innovation Project, and ARMTRACK Agriculture Project.

Sukuk bonds, also known as Islamic bonds, are a financial instruments that comply with Islamic principles. These principles prohibit interest payments and investments in companies that deal with illicit goods or services, such as gambling or alcohol. Sukuk bonds provide an ethical and socially responsible investment option for investors who prioritize such values.

The projects in Zambia will be financed through Sukuk bonds, complying with Islamic principles. Sukuk bonds will fund the construction of roads, and housing units, the adoption of renewable energy, and improvements in agriculture. Investors who prioritize socially responsible projects find ethical investment options with Sukuk bonds.

Related: IMF to Establish Islamic Finance Categories in SNA/BPM

Islamic Financing Expertise to Propel Zambia’s Development

Mayzuh’s expertise in Islamic finance and experience in alternative financing make it an ideal partner for projects in Zambia. Its commitment to Islamic principles ensures transparent, fair, and socially responsible financing.

Signing these agreements is a positive step for developing Sukuk bonds in Africa. It demonstrates the growing interest in alternative financing options that comply with ethical and religious principles. It also highlights the potential for Islamic finance to support development projects and contribute to economic growth in Africa.

Mayzuh’s involvement in projects in Zambia shows its commitment to sustainable development and ethical investments. Companies like Mayzuh will play an important role in facilitating alternative financing as Islamic finance grows in popularity, contributing to global development.