The Prospects for Islamic Finance in Africa Look Increasingly Promising
The footprint of Islamic banking in Africa is set to expand further as the continent seeks to deliver on the economic and strategic opportunities provided by Shariah-compliant financing. Sukuk has emerged as a viable and strong source of attracting international funding for infrastructure projects in Africa and the continent has recently witnessed a surge of successful Sukuk debuts. With its strong links to the real economy, Islamic finance is well placed to spur economic activity especially in the strategically vital African SME segment as well as provide the basis to boost international trade & investment by forging connections between Africa, the Middle East and broader OIC markets. In addition, Islamic finance is addressing financial inclusion imperatives on the continent by providing accessible financial services to the under-banked and growth is being further fueled as the leading international players in the Islamic banking industry continue to expand their retail offerings and footprint across the key markets of Africa. FinTech innovations internationally and on the continent are also driving game-changing disruptions which are re-shaping how Islamic banking operates.