Takaful Insights: Ethical Trade in a Shifting Economy

As Malawi navigates ongoing economic challenges—rising inflation, and foreign exchange shortages—businesses and individuals are adjusting their trade practices to stay afloat. From informal vendors to large-scale suppliers, many are adopting new pricing tactics, prioritizing quick profit over long-term fairness. However, in the face of this economic pressure, it is more vital than ever for trade to remain rooted in ethics and equity—principles that Islamic finance strongly upholds.

Islamic economic systems emphasize justice (adl), transparency (sidq), and mutual benefit (maslahah). These values are not idealistic sentiments but practical tools for sustaining fair economies, especially during hardship. As the Prophet Muhammad (peace be upon him) said: “The honest and trustworthy merchant will be with the Prophets, the truthful, and the martyrs on the Day of Judgment” (Tirmidhi).

Currently in Malawi, some traders are taking advantage of scarcity by engaging in price gouging, hoarding, or manipulating supply chains to create artificial demand. While these may seem like survival strategies in a struggling economy, Islam strictly discourages such behavior. In a Hadith, the Prophet (peace be upon him) warned: “Whoever hoards is a sinner” (Muslim). Islam promotes trade as a noble profession, but only when conducted with fairness and honesty.

The Islamic concept of Takaful—mutual protection and cooperative risk-sharing—reminds us that economic wellbeing is a shared responsibility. In the current climate, traders and consumers alike must think beyond personal profit and consider community impact. Instead of inflating prices, traders are encouraged to seek reasonable markup, offer fair deals, and maintain honesty in weights and measures.

This does not mean Muslims should avoid entrepreneurship or wealth creation. Rather, Islam encourages halal wealth accumulation through productive trade, investment in halal businesses, and financial dealings free of interest (riba). In Malawi’s current business environment, this could mean turning to Islamic banking windows like FDH Salama, practicing ethical sourcing, and avoiding exploitative lending or borrowing.

As we continue to examine trade and finance through the lens of Islamic ethics, one thing becomes clear: sustainability in business is not only about surviving market trends, but aligning with divine principles that ensure success in both worlds. In challenging times, the true strength of a trader lies in integrity.