Islamic Finance in Sub-Saharan Africa: Status and Prospects

IMF Working Paper WP/14/148

27 Pages Posted: 31 Aug 2014

See all articles by E. Gelbard

E. Gelbard

International Monetary Fund (IMF)

Mumtaz Hussain

International Monetary Fund (IMF) - Policy Development and Review Department

Rodolfo Maino

International Monetary Fund (IMF)

Yibin Mu

International Monetary Fund; Harvard University; World Bank

Etienne B. Yehoue

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: August 2014

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-fledged 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: Islamic Finance, Islamic Banking, Sub-Saharan Africa

JEL Classification: F30, G15

Suggested Citation

Gelbard, Enrique and Hussain, Mumtaz and Maino, Rodolfo and Mu, Yibin and Yehoue, Etienne Baba, Islamic Finance in Sub-Saharan Africa: Status and Prospects (August 2014). IMF Working Paper WP/14/148, Available at SSRN: https://ssrn.com/abstract=2489212 or http://dx.doi.org/10.2139/ssrn.2489212

Enrique Gelbard

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Mumtaz Hussain

International Monetary Fund (IMF) - Policy Development and Review Department ( email )

700 19th St. NW
Washington, DC 20431
United States
(202) 623-4027 (Phone)

Rodolfo Maino

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yibin Mu (Contact Author)

International Monetary Fund ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Harvard University ( email )

Cambridge, MA 02138
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Etienne Baba Yehoue

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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