Islamic Banking
South Africa shows interest in Islamic banking
By Business Times
Jul 13, 2006, 10:48

South Africa shows interest in Islamic banking
By Roziana Hamsawi
bt@nstp.com.my

July 13 2006

THE success of Islamic banking in Malaysia has attracted South Africa to learn more about it, despite the country having a Muslim population of just over one million.

Economic counsellor at the South African embassy, Sureiya Adam, said the interest in Islamic banking has been evident of late with visits made to Kuala Lumpur by some South African banks to learn more about it.

"There is quite a number of Islamic banking areas that have attracted our banks," she said, adding that the AmBank group is believed to be in negotiations to set up an Islamic bank branch or provide Islamic banking services in the republic.

However, she said the talks are still preliminary.

One of South Africa's largest financial services organisations, the Absa group, was recently reported to have stepped up its plans to provide full Islamic banking service to the country's Muslim community.

Sureiya was speaking to reporters after attending a seminar on doing business in South Africa, organised by the Malaysian Industrial Development Authority (Mida) in Kuala Lumpur yesterday.

In the seminar, the South African representative promoted the country's premier location for new industrial investment, the RM1.1 billion Coega Industrial Development Zone (IDZ).

Coega manager for enterprise development, Christopher Mashigo, said that among the potential areas for Malaysians to invest in the IDZ are the chemical and textile industries.

"We are looking for long-term investors, not the kind that expects overnight returns," he said, adding that sustainable development is crucial for South Africa to reduce its unemployment rate of between 30 and 45 per cent,

Outside the IDZ, Malaysians can invest in South Africa's services, hospitality and tourism sectors, which are expected to be given a tremendous boost come 2010 when it hosts the Fifa World Cup.

Mashigo said that traditionally, Malaysian businessmen had been focusing on the property sector before Golden Hope Plantations Bhd came in and acquired South Africa's Hudson & Knight (Pty) Ltd in 2004.

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