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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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.

Series:

Working Paper No. 2014/149

Subject:

Banking Financial services Islamic banking Islamic finance

English

Publication Date:

August 11, 2014

ISBN/ISSN:

9781498348669/1018-5941

Stock No:

WPIEA2014149

Pages:

27

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