PRESS RELEASE
NO EMBARGO
01 June 2020
AL JAMA-AH supports speeding up the establishment of an interest free State Bank
AL JAMA-AH’s leader in Parliament and Member of the Portfolio Committee on Small Business Development (SBD), Hon Ganief Hendricks says the party supports the establishment of an interest free State Bank.
The Party came out in support for an interest free State Bank after the Head of Economic transformation for the ruling party, Enoch Godongwana said calls for a State Bank have gained momentum during the COVID-19 pandemic.
AL JAMA-AH offered to prepare a master plan using the best minds in the Muslim world under the former President Jacob Zuma’s government, but the Big Six despatched its deputy secretary-general Jessica Duarte to its Cape Town headquarters to politely turn down its offer.
The World Islamic Bank expert Dr Mohammad Antonio from Indonesia was ready to travel to South Africa for discussions on an interest free State Bank. The Party believes the main reason why the government rejected the idea for a State Bank was due to it being interest free and the ANC financial experts insisted on a minimum interest rate of 3%.
Hendricks had earlier visited Bogor in Indonesia and met with several post-doctoral researchers on interest free banking. He brought the model for an interest free State Bank to Luthuli House still under the former Zuma government. Nothing stops AL JAMA-AH from proposing to the Ramaphosa government to consider the establishment of an interest free State Bank.
What is unique about such a model, is the offering of a micro finance targeted at the poorest of the poor as such a model will eradicate poverty. Hendricks have previously raised AL JAMA-AH’s interest free vision to the Portfolio Committee chairperson on Small Business Development. AL JAMA-AH believes that loans to small businesses, the agricultural industry, etc. should be interest free. The interest free loans will lead to the genuine development and empowerment of the nation’s poor, and a quicker turnaround time for profitability. Imposing interest on loans only create unsustainable debt.
For further details contact:
Mr Ganief Hendricks
Cell: 082 780 2573