IMF Working Papers

Islamic Finance in Sub-Saharan Africa : Status and Prospects

Author/Editor:

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

Publication Date:

August 11, 2014

Electronic Access:

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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.

Series:

Working Paper No. 14/149

Subject:

Angola Benin Bonds Botswana Burkina Faso Burundi Cameroon Central African Republic Chad Comoros Congo, Democratic Republic of the Congo, Republic of Djibouti Equatorial Guinea Eritrea Ethiopia Financial institutions Financial sector Gabon Gambia, The Ghana Guinea Guinea-Bissau Insurance International financial markets Islamic banking Islamic finance Kenya Lesotho Liberia Madagascar Malawi Mali Mauritania Mauritius Microfinance Mozambique Namibia Niger Nigeria Rwanda Senegal Seychelles Sierra Leone South Africa Sub-Saharan Africa Sudan Swaziland Tanzania Togo Uganda Zambia Zimbabwe