Islamic finance could serve as an alternative to strengthen financial inclusion and channel funding towards the productive sectors of Mozambique's economy, according to the authors of a new book titled Introduction to Islamic Finance – Principles, Contracts and Intermediation Models, recently launched in Maputo. The discussion comes as Mozambique already has a legal framework in place for the implementation of so-called participatory finance.
Janfar Abdullah, chairman of the board of Emose and one of the book's authors, explained that the motivation to deepen his study of Islamic finance stemmed from the need to find alternatives to the current pattern of credit distribution, particularly given the concentration of resources in the tertiary sector.
According to the author, the heavy orientation of financing towards services risks limiting the development of sectors such as agriculture, considered one of the primary sources of livelihood for Mozambican households.
'I am speaking of the fundamental motivation behind this work. Islamic finance allowed me to understand that there are alternative instruments that can readily ensure that financing is linked to the real economy. This is important because it is the real sector that produces, it is the real sector that transforms,' Janfar Abdullah said.
Abdullah also clarified that Mozambique has already passed legislation to enable the implementation of participatory finance, with the regulatory process currently under way. He said the book aims to contribute knowledge and proposals to support that process, rather than to pressure the state.
He also stressed the need to distinguish between Islamic finance and participatory finance.
'Islamic finance is a system with its own principles, governed by Sharia — the legal system and code of conduct of Islam. When I refer to a system, this includes banks, stock exchanges, capital markets, and insurance. Participatory finance, on the other hand, is a legal and regulatory term that the Mozambican legislature found to enable the implementation of Islamic finance,' he said.
The author explained that the adoption of the term 'participatory finance' is linked to the secular nature of the Mozambican state, and he advocated for a gradual rollout of the model.
'It would not be prudent, in legal terms, to adopt Islamic finance or any religious designation, as this could call into question certain principles enshrined in our Constitution,' he said, adding that the experience of other countries that began with pilot projects before scaling the model could serve as a reference for Mozambique.
Co-author Carimo Modan recounted that his interest in Islamic finance emerged between 2010 and 2013, after working across different financial institutions and deepening his understanding of his religion.
His encounter with the prohibition on interest led him to question his continued presence in the banking sector.
'A Muslim cannot receive interest, cannot pay interest, and cannot facilitate it. I looked at the experience I had built and realised that, at the very least, I was facilitating it. This was a defining moment in my life: whether to remain in banking or change my professional path,' he said.
Drawing on that experience, Carimo Modan resolved to deepen his training in Islamic banking and finance, with the aim of contributing to the development of this model in Mozambique and disseminating knowledge in the Portuguese language.
'Islamic banking is not only for Muslims. In our country, it is being introduced through the Participatory Banking Law, Law No. 20 of 2020, and it does not come to replace conventional banking. It is positioned as an alternative, an additional avenue for Muslims, and for non-Muslims it becomes an additional option and, above all, a right to choose,' he said.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/25/economia/financas/autores-apresentam-financas-islamicas-como-alternativa-para-o-financiamento-da-economia-real/
