Musharaka

A True Business Partnership

Musharakah is a genuine partnership where we share in both the profits and losses of a business or project. Unlike a loan, this is a collaborative effort built on trust and mutual benefit.

Partnership

True business partnership, not a loan

Profit Sharing

Distribution based on agreed ratios

Shariah Compliant

Certified by Islamic scholars

What Is Musharaka?

Musharaka is a Shariah-compliant partnership agreement. Amal Takaful provides the funds you need, and you provide the idea, time, and management. Together, we share profits — and risks — according to a pre-agreed ratio.

Example:

You want to open a restaurant. You have cooking skills and TZS 5 million to invest. But the restaurant needs TZS 15 million to start.

Amal Takaful Microfinance agrees to enter into a Musharaka partnership with you:

You contributes TZS 5 million + your time and effort.
Amal Takaful contributes TZS 10 million in cash.

Together, we run the restaurant. At the end of each month:

We share profits based on an agreed ratio, e.g., you 40% and Amal Takaful 60%.
If there’s a loss, it is shared according to our actual capital contribution (eg. you 33%, Amal Takaful 67%).

Once you becomes more financially stable, she can buy out Amal Takaful’s share step by step untilyou owns the restaurant fully.

Key Features:

Equity-Based Partnership. No interest, no fixed installments
Profit & Loss Sharing. Transparent, fair, Shariah-compliant
Business Growth Focus. We win together
No Collateral Pressure. Your business is the security

Musharakah is a testament to our commitment to supporting your entrepreneurial spirit and fostering genuine economic partnerships in our community.

How Musharaka Works

Joint Investment

We contribute capital alongside you for a specific business venture.

Shared Management

Both parties have the right to participate in the management of the venture.

Profit & Loss Sharing

Any profits are shared between us based on a pre-agreed ratio. If the business incurs a loss, it is shared in proportion to our respective capital contributions.

Who Musharaka Is For

If you have capital, skills, or ideas and want to grow through partnership, Musharaka is for you.

Young Entrepreneurs

Ambitious youth ready to partner with us and bring their business ideas to life.

Traders & Artisans

Small-scale traders and skilled workers seeking a joint venture to expand operations.

Women-led Ventures

Women entrepreneurs looking for partnership financing to grow their businesses.

Freelancers & Consultants

Independent professionals who need shared capital support to scale their services.

Talents

People with skills and vision who can run a business if given startup partnership funds.

Community Startups

New ventures seeking a joint-capital approach to launch and grow sustainably.

Ready to Start Your Partnership?

Join hundreds of entrepreneurs who have built successful businesses through Musharaka

Why Musharaka Matters for Your Business

Traditional banking creates debt. Musharaka creates partnerships. Here’s the difference:

Traditional Loans

Musharaka Partnership

Frequently Asked Questions (FAQ)

What is Musharaka financing?

Musharaka is a Shariah-compliant partnership where you and we (the financier) pool money and/or effort into a business, then share profits based on an agreed ratio and losses according to actual contributions.

How is Musharaka different from a loan?

In Musharaka, we are partners, not lenders. There is no fixed interest. Instead, both sides share profits and risks fairly.

Who can apply for Musharaka?

Anyone with a viable business idea, skills, or existing venture who is willing to partner and share responsibility.

How are profits shared in Musharaka?

Profits are shared based on a pre-agreed ratio (e.g., you 40%, we 60%), regardless of how much capital each side invested.

How are losses handled?

Losses are shared strictly according to actual capital contribution (e.g., if you invested 30% and we invested 70%, losses are shared 30:70).

Can I eventually own the business fully?

Yes. Over time, you may buy out our share gradually until you become the sole owner of the business.

What kind of businesses qualify for Musharaka?

Any ethical and Shariah-compliant business, such as trading, services, small industries, or community projects.

Apply for Musharaka

Apply Now in 3 Easy Ways. Choose the method that works best for you:

What You Need to Apply for Musharaka

Valid NIDA ID
Basic business plan or proposal
Estimate capital required
Estimate capital required
Your relevant experience
Expected revenue, expenses and business duration