The G20 Interfaith Forum convened in Cape Town this month and I joined the conversation from a different angle: as a banker, but also as someone who works in what has broadly been categorised as “faith-based finance”. The theme was “Ubuntu in Action” and discussions focused on how we can pool together resources to support vulnerable communities. With Pope Francis having declared 2025 a Catholic jubilee year, there is also a call to unity, fairness and renewal.
In the breakaway session I participated in, the question at hand was clear: how can finance move beyond self-interest to become an instrument of service — how do we inculcate equity in the architecture of finance?
The answer to this question calls on all of us to reimagine finance. To think about how it could be rebuilt to serve people and achieve a welfare society, and not just generate profit.
Every economic system we know is man-made, and all of these systems and institutions aim at realising some human value or values. Capitalism is grounded in the value of freedom and socialism in the value of equality. The value of freedom in capitalism manifested itself through the concepts of the “free enterprise” and the laissez-faire approach to markets. This gave immense growth to economies. However, it weakened the value of equality.
In faith-based finance, wealth is seen as something owned by the Almighty, rather than something we possess absolutely. Because of this belief, we must strive to establish a practicable economic system to ensure that everyone receives what is rightfully due to them
Thus, in what could be considered a “knee-jerk” reaction to this, “scientific socialism” (communism) emerged. The tragedy in this system is that, on the other extreme, the value of freedom began to be removed from society.
We learn from these two examples that emphasis on only one value to the exclusion of the other is detrimental. Faith traditions point to something to reconcile this dichotomy: justice. Justice keeps freedom in check so it that does not oppress. It keeps equality in check so that it does not kill initiative.
In a just economy, people earn what they deserve. It creates an environment where individuals begin to function normally, without compulsion. This introduces a sense of normality, as each person possesses unique abilities, latent aptitudes and personal preferences. As a result, they have the freedom to explore and aspire to greatness according to their inherent capabilities. This, in turn, can steer the economy towards the proper utilisation of the natural forces of supply and demand.
In faith-based finance, wealth is seen as something owned by the Almighty, rather than something we possess absolutely. Because of this belief, we must strive to establish a practicable economic system to ensure that everyone receives what is rightfully due to them. It should also work to eradicate the concentration of wealth because, just as a blood clot can cause harm and proper circulation is essential for health, the proper circulation of wealth is vital for a healthy economy.
Justice turns finance into service. It shifts the question from “What can I gain?” to “How can I help?”
Right now, research shows that the Islamic finance sector holds around $300bn (about R5.3-trillion) in surplus liquidity. Most of it is in the Gulf Co-operation Council (GCC) and Southeast Asia regions. It sits in sovereign wealth funds, pension reserves and deposits.
At the same time, many African nations, including South Africa, Nigeria, Kenya, Ghana, Uganda and Tanzania, have medium-term fiscal deficits (based on IMF data). Their combined deficit numbers almost match this available surplus.
The opportunity is clear. Pair this capital with Africa’s needs. Use Shari’ah-compliant investments. Make them fair, asset-backed or based, and accountable, with clear “use of funds or proceeds”.
But there’s a hurdle. We need a middle ground between generating sufficient returns for owners of that capital and making it affordable to African countries. When South Africa entered the domestic Islamic capital markets in 2023, long-term pricing reached almost 12%. That is far higher than in developed markets. We need structures that offer fair returns and still serve development.
The G20 has set big goals. Disaster-readiness. A just energy transition. Humanitarian response. These take money, but they also take the right kind of money.
Islamic finance fits well. By avoiding speculation and linking every deal to a real asset, its principles naturally align with the goal at hand. It shares risks equitably. It makes finance part of the real economy, not detached from it. It can redirect surplus funds to build power grids, finance clean energy or help communities recover from disaster. And still be accountable to those who invested the money in the first place.
Ubuntu says, “I am because we are.” In finance, it means recognising that markets thrive when communities thrive, and that no-one wins in the long-term if others are left behind.
Justice, rooted in faith and expressed through service, is the bridge we need. Africa can be the proving ground. We can show that capital can be a servant, not a master. The jubilee year asks us to move beyond earning to serving. If we answer that call, finance can do more than grow balance sheets. It can grow hope. Africa is our home. We drive her growth.
• Hassen is head of Shari’ah banking, Standard Bank South Africa
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