GoTyme Bank, a South African bank offering business funding, has introduced Shari’ah for Business, a financing product structured through a Wakaalah arrangement. The product is available to qualifying South African businesses and is designed as an investment based alternative to conventional interest bearing finance.
The launch comes as Islamic finance expands globally, with industry assets estimated to exceed $4 trillion. In South Africa, Muslims account for about 2% of the population, representing around 1.1 million to 1.3 million people. The bank said demand for Shari’ah compliant financial products has historically exceeded availability, particularly among small and medium sized businesses.
Under the Wakaalah structure, GoTyme Bank invests in a business’s trading activity and appoints the business owner as its agent. The business then uses the funds to purchase Shari’ah compliant, non perishable goods, sells those goods through its normal operations and repays the investment from the proceeds. The structure does not charge interest.
The arrangement is governed by a single Wakaalah agreement, which ends once the agreed maximum amount has been reached.
The product is overseen by an independent Shari’ah Advisory Committee made up of three scholars. Muftī Ahmed Suliman has served as a Shari’ah Advisor and Board Member for financial institutions locally and internationally for more than two decades. Muftī Zaid Haspatel specialises in Islamic jurisprudence, while Muftī Yusuf Suliman is accredited by the Accounting and Auditing Organisation for Islamic Financial Institutions as a Shari’ah Advisor and Auditor.
The committee reviews the Wakaalah structure and provides ongoing guidance on Shari’ah compliance.
Repayments are collected automatically through debit orders based on a percentage of average daily or weekly card payments. This means the amount paid back can move with trading activity rather than following a fixed monthly instalment. The maximum amount agreed under the arrangement is set at the beginning of the process.
Eligibility requires a minimum monthly turnover of R50,000 and at least six months of active trading. Funding ranges from R50,000 to R5 million, with terms of three to 12 months and payment within 24 hours of contract approval.
The funds must be used to purchase Shari’ah compliant goods under the Wakaalah agreement. They cannot be used for salaries, rent, refinancing or repayment of other funding arrangements. GoTyme Bank also provides a dedicated Shari’ah Funding Specialist to help applicants determine which purchases qualify before an agreement is signed.
The product does not require applicants to be Muslim. Any South African business that meets the qualifying criteria and operates within a Shari’ah compliant trade or activity can apply, regardless of the owner’s faith or background.
