Islamic Finance in Sub-Saharan Africa: Status and Prospects

Enrique Gelbard, Mumtaz Hussain, Rodolfo Maino, Yibin Mu and Etienne Yehoue

No 2014/149, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; finance activity; infrastructure financing needs; bank insolvency law; banks customer; Islamic Finance; Islamic Banking; Sub-Saharan Africa; sukuk financing; firm commitment; bank ABSA; Africa; North Africa; Middle East (search for similar items in EconPapers)
Pages: 27
Date: 2014-08-11
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Citations: View citations in EconPapers (5)

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