Philippine investment bank tests Islamic finance via agriculture loans

Aims to support ventures of farmers, fishermen, agrarian reform beneficiaries across Bangsamoro region

DAVAO CITY, Malaysia (MNTV) – An investment bank is testing the waters for Islamic financing through interest-free loans to farmers and fishermen in the Philippines’ Bangsamoro Muslim region, reports Business Mirror. 

The initiative was formalized last week after the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) and the Ministry of Agriculture, Fisheries, and Agrarian Reform (Mafar) agreed to implement a 7.5-million philippine pesos (approx $131,000) “Mafar Loan for Enhancement of Necessary Development Strategies” (Mafarlends) program. 

The program will provide Shariah-compliant financing, which will not impose interest on loans, to support agribusiness ventures of farmers, fishermen, and agrarian reform beneficiaries (ARB).

AAIIBP CEO Amilbahar P. Amilasan Jr says the program specifically targets those in communities in Basilan, Sulu, Tawi-Tawi, Lanao del Sur, Maguindanao del Sur, Maguindanao del Norte, Cotabato City, and Special Geographic Areas (SGA). 

Amilasan said they consider the Mafarlends as a vital financial assistance for the farm and fisheries sectors of the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm). 

“We pledge responsive, quality services to underserved Bangsamoro communities,” Amilasan said after signing a Memorandum of Agreement (MOA). 

Minister Abunawas L. Maslamama said that the agreement aims to enable the beneficiaries to engage in income-generating agribusiness ventures, uplifting the latter’s livelihoods while respecting their faith through Islam-based financing. “It bridges our farmers and fisherfolk to wider markets,” he added.