Islamic Finance in Sub-Saharan Africa: Status and Prospects

By Enrique A Gelbard, Mumtaz Hussain, Rodolfo Maino, Yibin Mu, Etienne B Yehoue

August 11, 2014

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Enrique A Gelbard, Mumtaz Hussain, Rodolfo Maino, Yibin Mu, and Etienne B Yehoue. Islamic Finance in Sub-Saharan Africa: Status and Prospects, (USA: International Monetary Fund, 2014) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Islamic finance is a fast growing activity in world markets. This paper provides a survey on Islamic Finance in SSA. Ongoing activities include Islamic banking, sukuk issuances (to finance infrastructure projects), Takaful (insurance), and microfinance. While not yet significant in most Sub-Saharan countries, several features make Islamic finance instruments relevant to the region, in particular the ability to foster SMEs and micro-credit activtities. As a first step, policy makers could introduce Islamic financing windows within the conventional system and facilitate sukuk issuance to tap foreign investors. The entrance of full-fleged Islamic banks require addressing systemic issues, and adapting the crisis management and resolution frameworks. The IMF can play a role by sharing international experiences and providing advice on supervisory and regulatory frameworks as needed.

Subject: Banking, Financial services, Islamic banking, Islamic finance

Keywords: Africa, Bank ABSA, Bank insolvency law, Banks customer, Finance activity, Firm commitment, Infrastructure financing needs, Islamic Banking, Islamic Finance, Middle East, North Africa, Sub-Saharan Africa, Sukuk financing, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/149
Stock No:

WPIEA2014149
ISBN:

9781498348669
ISSN:

1018-5941

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